DOW dropped -710.16 pts, or -2.72%, overnight on worries of resurgence of coronavirus infections and transatlantic trade war. The technically development was not surprising though as the index remains bounded in consolidation from 27580.21 short term top. 55 day EMA (now at 25177) will be the first line of defense. But the key near term support level will be 38.2% retracement of 18213.65 to 27580.21 at 24002.18.
As long as 24002.18 holds, we’d still expect the rise from 18213.63 to resume sooner or later to retest 29568.57 record high. However, sustained break of 24002.18 will argue that consolidation pattern from 29568.57 is starting the third leg. Deeper fall would be seen to 61.8% retracement at 21791.67 and below.
