We can see the Dow Jones Index (DJI) trading below EMA50 on the weekly.
We have a chart that shows the exact path that we believe the DJI will take and it is playing out perfectly:
We know that this index and the SPX move quite similar. And with the SPX now being super bearish, the DJI might follow.
Support for the DJI is sitting at 25220, if this level breaks, expect for it to move much lower. If this level instead holds, expect a bounce before we can analyze the next move.
Overall, the indicators are bearish and the chart structure as well.
After hitting a new all-time high, it is normal for the price to retrace.
DJI has two visible gaps, first gap is at 200 weekly ma and second is at around 300