Dow emini stops@20% bear mkt with mma50 & GANN line support
Dow e-mini officially entered bear market territory breaking below 20% decline limit & the weekly wma200 line. It is the only major index that made a lower low & confirmed by the transports DJT. Dow, with a lot of defensive stocks, has been holding the strongest all this time & I think it will be the last to capitulate before the market bottoms. (After market takes out the weak hands & stop losses)
However, it is still uptrend in the monthly chart with mma50 & my GANN line as support. It took only 7 weeks for it to drop 14% from the August top…exactly from 1 GANN line to the next one below. (Looks like a capitulation)
The moves this week will determine if current support will hold as Dow consolidates before the 4Q2022 rally up to December. (This may technically still be a double bottom…only a little below the 0.386 Fib retracement zone from pandemic low to ATH)
The monthly mma50 must hold to be bullish. Otherwise the next support will be the next GANN line below around the 27k to 28k zone…near the 0.50 Fib retracement zone.
Not trading advice
However, it is still uptrend in the monthly chart with mma50 & my GANN line as support. It took only 7 weeks for it to drop 14% from the August top…exactly from 1 GANN line to the next one below. (Looks like a capitulation)
The moves this week will determine if current support will hold as Dow consolidates before the 4Q2022 rally up to December. (This may technically still be a double bottom…only a little below the 0.386 Fib retracement zone from pandemic low to ATH)
The monthly mma50 must hold to be bullish. Otherwise the next support will be the next GANN line below around the 27k to 28k zone…near the 0.50 Fib retracement zone.
Not trading advice