Dow-30 held critical support @ 16.675, but is still below both its 50-day and 100-day MAs which are located @ 16.900. The market is at one-month lows, but still about 450 points above its August bottom. The way buyers reemerged to “buy the dip” gives hope for a revisit of 17K in the next days, although the MACD signals “sell”. I personally like price consolidation below all-time highs and what index bulls want to see is Dow-30 trading above the critical 16.900-17.000 area to confirm the reversal of trend direction. On the other side, the 200-day SMA @ 16.600 and the August low @ 16.350 provide price targets for the bears, but this would pretty much make it on the downside, before the market recovers again.
Dow Jones Industrial, daily chart:
Chart courtesy of Investing.com. http://investing.com
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