DOW follows global stocks lower and is currently down more than -400 pts, or -1.5%. There is no further selling at this point yet, but there is no sign of recovery neither. Despite the steep fall, outlook is unchanged for now. That is, 29373.52 is a short term top. Fall from there is corrective the rise from 25473.46.
For now, deeper decline is expected to 55 day EMA (now at 28332.18) and possibly below. But we’d continue to expect strong support from 38.2% retracement of 25743.46 to 29373.62 at 27986.89 to contain downside and bring rebound. Long term up trend is still expected to resume at a later stage.
