Dow Jones Index Outlook

Last night, the DJI dropped below the 20% mark when measured from the high on Feb 12. This is considered the criteria for a bear market. The closing was also just below the 200 days moving average. A closing below this moving average is also considered to be a bearish sign. It would be interesting to note that this 200 days moving average managed to hold the DJI during the correction in Feb and Mar of 2016. The Dow futures is currently down more than a thousand points at 22,344. It is likely we are at the start of a bear market. The next important price support is at 21,712. This is the Christmas Eve’s low. The Fibonacci 62% correction point is at 20,836.

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