On Support at 26,300 – Break or Bounce?
“…need to continue watching Support at 26,300 for a downside break.” Technically, this level was broken Tuesday, but it’s holding its own right there. The market will either consolidate at this level, and then likely go lower, or bounce off it for a move to the top of the channel at 27,000. So once again, this level is going to be key to watch for trading decisions on Wednesday and the remainder of the week.
Looking at the Daily Chart, we see that the range which has formed over the past few weeks is a narrow Consolidation itself, which is now in jeopardy of being broken to the downside. If it isn’t, a suggested upside move to 28,200 is possible. It all depends on whether the market is going to continue consolidating in the range marked in the 39 Minute Chart.
I keep emphasizing the 26,300 level because it is such a clear Support line in the Dow chart. If it breaks through, that will indicate severe weakness has suddenly entered the market, and a move down to 25,000 is then fairly likely.