The Dow continued to give back ground yesterday plunging 602 points after reaching its best closing level in a month last Thursday. Light trading activity may have exaggerated the downward move, as government offices, the bond markets, and most banks were closed in observance of Veterans Day. Looking ahead, amid another quiet day on the U.S economic front, trading today may be impacted by reaction to the latest earnings news.
The Dow plunged over 600 points yesterday in its biggest single-day loss in over two weeks, crossing the 200-period moving average, forming a black candle pattern, signaling a reversal on the hourly chart. On the daily timeframe however, things look different, with prices still trading above the moving averages and the 20-day MA at 25,350 acting as key technical support. As prices are trading close to November's low at 25,080, downside momentum might speed up should the index mark new lows for the month.
Support: 25275 / 25025
Resistance: 25555 / 26250