At the beginning of July, we observed that both Dow Jones and S&P500 broke key support . Then, we next observed that there was a US market can have high probability to rebound in mid of July when it was trading near the 50% Fibonacci support. Indeed, it rebounded, crossed 20d MA resistance but now it is coming to a halt in this technical rebound.
Why do I say that?
Very simple, key support of Dow Jones is around 11,730 which was the Mar low. Key support of S&P 500 was around 1,276.
Now both Dow Jones and S&P 500 are trading very near to this key support area. Remember in technical analysis, we have a guiding rule that "Support turns Resistance ", so this key support becomes resistance now.
In addition, I also observed that MacD histogram turns downward from a recent peak, that shows weakness in the market and sideway or downward movement is ruling the market now. Therefore, I am expecting downward correction to resume now.
Dow Jones next support level is 10,827 which is the recent low. Similarly, S&P 500 next support is 1,200.
Trade with care 
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
