US stocks suffered another day of crash overnight, DOW lost another -1190.95 pts, or -4.42% to close at 25766.64. With -11.13% decline for the week so far, it’s among the top 15 of DOW steepest weekly selloffs. S&P 500 dropped -4.42% while NASDAQ dropped -4.61%. Both are heading for their worst weeks since 2008 financial crisis too. 10-year yield dropped -0.011 to 1.299 while 30-year yield dropped -0.012 to 1.784. Both were new record lows.
DOW selloff was way worse than we initially thought. 55 week EMA was taken out without any hesitation. Bearish divergence condition in weekly MACD suggests that it’s set up for further correction. From pure technically point of view, current fall could extend to 38.2% retracement of 15450.56 to 29568.57 at 24175.49, which is close to long tem trend line support, before have enough support for sustainable rebound.
