DOW closed sharply lower overnight by -424.56 pts or -1.74%, at 24023.13. The rebound from 23344.52 is confirmed to be complete at 24585.97, after failing to sustain above 55 day EMA. While the strength of the rebound was disappointing, the overall development is in line with our view. That is, price actions from 26616.71 high are developing into a medium term correction that’s not completed yet
Further fall would be seen back to 23344.52 ahead, as long as 24585.97 holds. While there could be some support at that level, and eventual break is expected to 38.2% retracement of 15450.56 to 26616.71 at 23351.24. That was our original target. Judging from the descending triangle shape of the pattern from 23360.29, we’re now slightly leaning to the case of deeper fall to 50% retracement at 21033.63 before completing the correction.
