The Nasdaq is holding up on key support, chart to follow, but the Dow and Sand P still look to have quite a lot further to fall.
With markets on heightened alert for first time in months we can expect more in the short term with markets whipsawing between blue horizontal supports and resistance lines on the charts.
With the threat of whipsaw in the air it's prudent to break the moves down as best we can...
I believe that the best points to look for potential short term support - and therefore a brief bounce before the decline resumes - are at the gap points on the chart. And you can see that's where the index is resting now - at the top of the original breakaway gap shown on the Last Dow chart sent out. The blue horizontal lines on this chart show where the gaps are, as well as old highs and supports, where they look relevant to the downtrend.
Of particular interest is the point where the ascending blue intersects the horizontal support lines at 20319-20295. This will become the next downside target if minor support at the gap/ current values gives way, which I believe it will soon.
If 20620 gives way its a short...it's right in that level as this is written.
When it breaks it should come back to 20535 and then after a brief bounce back to the next gap at 20319-20293.
Amazing...it's still holding up right on the level at 20620...if/when it breaks by 10 points it's worth shorting again, and doing the same with FTSE and Sand P depending on risk appetite.
Right now the Dow is fighting itself inside the gap...don't short unless/until we see that break below 20620