DOW opened sharply lower and dived to as low as 23523.16 in the first hour. That’s 510 pts of decline. But it quickly found footing and recovered. At the time of writing, it’s down only around -1.1%, with loss halved.
Technically it’s, for now, holding on to 2336.029 key near term support. But rebound has been getting weaker and weaker. This is so far in-line with our view that current fall is the third leg of the corrective pattern from 26616.71.
Volatility aside, near term outlook will remain bearish as long as 24314.30 resistance holds. And a decisive break of 23360.29 support should be seen in the near term.
For, we’re seeing the fall from 26617 as correcting the up trend from 2016 low at 15450.56. Such correction would try to hit 38.2% retracement of 15450.56 to 26616.71 at 22351.24 before completion.
