Since our call for the arrival of the bears in the US’ Dow Jones market last Friday, the bears have grown and have knocked down another 117 points off the Dow. Now the US bears’ main weapon is investor concerns about the upcoming
earnings season in the US. With the bears currently dominating the steering wheel for the US markets, we are looking for important levels of support to slow the US bears down.
Immediate Dow support : 8,000
The immediate support for the Dow Jones lies 163 points away at the 8,000 level. This support level is reinforced by the mid term 90-day Moving Average trend line.
A break below this level would have severe repercussions and will bring the Dow to its next support of 7,500.
Next Dow Support : 7,500
The 7,500 level lies 663 points away and consists of the lows of the month of April. If this critical level breaks, we could possibly see a bleak scenario of the Dow venturing towards its ultimate low of 6,469.5 (6th March low) and possibly creating a new ultimate low. However, we opine that the possibility of this scenario materializing is rather low.
The immediate support for the Dow Jones lies 163 points away at the 8,000 level. This support level is reinforced by the mid term 90-day Moving Average trend line.
A break below this level would have severe repercussions and will bring the Dow to its next support of 7,500.
Next Dow Support : 7,500
The 7,500 level lies 663 points away and consists of the lows of the month of April. If this critical level breaks, we could possibly see a bleak scenario of the Dow venturing towards its ultimate low of 6,469.5 (6th March low) and possibly creating a new ultimate low. However, we opine that the possibility of this scenario materializing is rather low.
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