Weak close for the DowJ last night, closing below the resistance level of 14825, we need more downward pressure today however to confirm the follow through. A further move south and all eyes will be on the previous significant low at 14570 level and the Elliotticians on 38.2% Nov12-Aug13 retracement at 14440. The ultimate test would be for it to try the bottom of the trend channel support at approx. 14200 Watch for a close back above 15050 because we may start to change our tune.RSI is flirting with the oversold territory it must be noted, but the MACD remains in bearish mode and have seen downwards crossing on the MAs. On the fundamental side, with the potential US military action in Syria, Fiscal cliff looming for mid-October and Fed Tapering next month, it is also hard to get overly bullish on the equities front right now.
Charts sourced from ig.com
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