Friday’s stock market sell off was tied to weaker than expected economic data from China and Europe that worsened growing concerns over the global economy. Strong moves may be limited by the imminent FOMC update this Wednesday, as investors await the positioning of the Fed to direct the US market. Worries over global economic slowdown may not be enough, as investors would hope, to persuade the dovish stance sought to lift the equity markets. US fundamental data this week may be undermined alongside the highly anticipated FED meeting that should address the country’s economic backdrop.
The Dow fell nearly 500 points on Friday and should continue its gradual decline as it treads and bounces off the 20MA sliding down the lower bound of the Bollinger band. As the ADX reading is climbing high, we see the downside trend strengthening and sellers looking to push the index to December’s bottom at 23,894 before confirming a direction.
Support: 24002 / 23894
Resistance: 24460 / 24521