Dow is at a critical 78.6 fib support as 13,300 is a critical point for support and yesterday Dow did close at 13295. If it falls below this level on stronger volumes, the next major support is 13000. That’s an area we need to watchout. Retail sales data is due at 8:30ET and this data is capable of moving market in either direction. Nasdaq is also at the same critical level. S&P has breached that point and 1470 is a key support area. Russell 2000 (RUT) is at 820 major support area and if that’s brokern, there are couple of other points i.e. 816 but then it is followed by 800/795 area.
Here are all the four charts:
Message is quite clear, same as yesterday, expect the unexpected this week. Markets will be volatile and can move in either direction, bias being downward.
Porfitable trading, OptionPundit