Dow Jones Market Correction Potential Levels
DJI with the clear breakouts from long-term channels (blue & dark pink).
Interestingly "smart money" appears to have been incredibly prescient in timing a perfect sell-off before the p-demic lock-down and March 2020 crash.
Most likely correction will be approx 40% from ATH to about 21.7k.
Minimal market correction of 20% to 29.5k has low probability of being the floor given the significant "quantitative easing" realized.
Correction to the top of the original long-term blue channel would be 60% retraction and would indicate a complete market reset.
40% corrections have been a common trend reflected in the NDX chart with events, posted yesterday and linked here.
Interestingly "smart money" appears to have been incredibly prescient in timing a perfect sell-off before the p-demic lock-down and March 2020 crash.
Most likely correction will be approx 40% from ATH to about 21.7k.
Minimal market correction of 20% to 29.5k has low probability of being the floor given the significant "quantitative easing" realized.
Correction to the top of the original long-term blue channel would be 60% retraction and would indicate a complete market reset.
40% corrections have been a common trend reflected in the NDX chart with events, posted yesterday and linked here.
Comment:
Inflation measures are continuing to reflect major headwinds, commodities spiking, recession risk increasing. Deep retracement similar to if not worse than housing market crash in 2008.
