US stocks gap broadly lower today. While the decline is so far “relatively” limited, recent support levels are taken out. That is, DOW drops through, 25222.51 support and the fall from 26695.96 is resuming. Similarly, S&P 500 gaps through 2801.43 support to as low as 2778.45 so far.
Development so far is in line with our view. That is, fall from 26695.96 is the third leg of the consolidation pattern from 26951.81 historical high. Further fall should be seen in near term to 38.2% retracement of 21712.53 to 26695.96 at 24792.28. But we’re looking at at least a break of 61.8% retracement at 23616.20 before bottoming.
