US stock market has been declined since the falling of the 2 big financial giant – Lehman and Merrill Lynch. US Congress has finally approved and give the green light to the bail out plan.
However, the market had a big fall yesterday and it was once Dow Jones dived by 700 points. That’s an unbelievable fact, but it happened.
Let’s take a look how is the Dow Jones stock market trends using technical analysis!
Dow Jones is Sitting on 61.8% Fibonacci Support
Dow Jones had a big fall yesterday. You can see that it formed a dark candle on the DJI chart. Luckily, the situation was not worse off because there was a rebound and finally Dow Jones managed to close above the 61.8% Fibonacci support line.
All indicators are looking still bearish at the time being. My take now is that the market will likely continue its down trend or swing sideway if the 61.8% Fibonacci support can hold well.
It will be very important to watch for the price in the next 2 days to determine if the Fibonacci support can hold, otherwise, breakage of the 61.8% can be catastrophic in technical analysis that the market can continue to dive till the 100% line which is the 2002 low at 7000 over level.
Dow Jones Index Stock Market Trends
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.
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