Dow-30 broke down below both its 50-day and 100-day MAs on Tuesday, closing at a one-month low, but still about 450 points above its August low. Buyers did not “buy the dip” and today’s loss confirms the sell MACD signal of the last days as price consolidation below all-time highs resolved to the downside. Index bulls want Dow-30 to return back above the critical area 16.900-17.000 by Friday. The 200-day SMA @ 16.600 and the August low @ 16.350 provide price targets for the bears. We need to see the market’s reaction to tomorrow’s ECB policy statement too, before jumping to more conclusions.
Dow Jones Industrial, daily chart:
Chart courtesy of StockCharts.com. http://stockcharts.com
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