Just saw the updated chart last night. We broke thru the 65MA. If I were to use the trading range that it broke down from, we are looking at a downside target of 3467, which is also my next support.
After breaking the 65 MA support I redrew my trendline from the June 21 trough and connected it with the Feb. 28 correction. We can then assume that the next support will still be above the 130 MA which is 3,462.43 I got this by using the fibonacci retracement.
The current situation should not be a cause for alarm for all of us, as we can see, uptrend is still intact and we still need to break the previous low of 2,965.80 from the Feb 28 correction. Although, for the next few weeks we shall be experiencing a bumpy ride as the market will be volatile. The DJIA was again down by 208.10 last Friday, so I hope the trendline will still be respected.
