Dow Jones has broken the important short-term support at 16240 and reached our first target of 16140 (50% Fibonacci retracement). The decline from 16588 seems corrective and we believe that we are most probably in wave C down. It seems that prices however have a bit more downside left as wave C feels incomplete. We believe that another new lower low could be seen today before an upward reversal comes.
We believe that the downward correction is incomplete and that a new low near 16000 should be the end of this downward correction. The longer-term trend remains up and if support at 16000 fails, we should expect 15700-15900 to be tested.
Above 16520 we will have confirmation that the downward correction has ended and that we are heading towards new highs near 17000. For more help trading this index become a member today. As always, thank you for taking the time to catch up on my thinking.