Will the Dow Jones Industrial Average Sell Off Continue Today?
-Dow Jones Industrial Average closed down nearly 130 points and enters a support zone we cited yesterday
-Higher probability patterns suggest a reaction higher from nearby levels
-Pattern remains bullish while prices are above 18,600
In yesterday’s report, we identified 19,750-19,840 as a potential price zone Dow Jones Industrial Average (DJIA) may dip into.
The low of yesterday’s price action was 19,827, which is right into the upper portion of this zone. At this point, we cannot say for sure if price will bounce higher from these levels. However, the odds are shifting that a reaction higher may develop today. We do not think this bump higher will follow through and break above 20,000, but it may give day traders something to work with.
The key level to watch is the December 14 low near 19,750. As discussed yesterday, a move below 19,750 does not negate the bullish patterns, but simply delays them as price may extend down towards 19,000-19,250.
This Friday December 30, Jeremy will review the longer-term patterns for DJIA. If you wish to join Jeremy in this or his other US Opening Bell webinars to discuss this market, register and join here.
Dow Jones Industrial Intraday Chart
Created using TradingView
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.