More Than Moving

For three consecutive days the DJIA had a triple digits loss. For this shorten trading week, all three major indices, DJIA, SP500, and the Nasdaq loss around 4%. Today’s drop was more than a move, it was a dive. Shortly after 1:00pm EST, the market started to accelerate on the downside. Most of the intermediate support levels I have mentioned in my previous post were broken. The DJIA, SP500 and Nasdaq 100 are coming down to test major support level. These support levels are: 1025 for the SP500, 9650 for the DJIA, and 1660 for the Nasdaq 100. One can sense the tone and sentiment for the market have changed. Will this down trend simply a correction or a reversal? This will depend on how the indices react when they reach the major support level. For now, the bias favors the downside. I will not be buying on the dip here.

Here are the updated charts with some possible support level to monitor:

DJIA:



SPX:



NDX:



RUT:



XLE:



XLK:



XLF: