Dow Jones leans on an important support. - Technical Analysis - 06-01-2016

Dow Jones Industrial Average gave up ground in the intra-day levels and short term trading, with negative pressure from the simple moving average for the period 50, leaning thereafter in the important support level of 16,858, which represents the ratio 38.2% of Fibonacci retracement levels for an ascending wave in the short term (from 17,904 to 17,009), and with an influx of negative signals from relative power indicators like the Stochastic as shown below the attached chart.

 

Therefore we stand neutral on the index' next behavior towards the support of 16,858. If it breached that level, it would open the door for more losses, targeting thereafter the next support at 16,535, which represents the ratio 50% of the same retracement levels mentioned earlier.