Dow Jones US30 Chart Technical Outlook The bias remains bearish at 42,385
The index completed a bearish 5-wave count at Tuesday’s base of 42,890. Elliott Wave analysis would suggest we are in the corrective sequence higher.
The previous support level of 43,798 from November 13, now becomes resistance. We can note an inside-ending wedge pattern. Trend line support is currently located at 43,220.
Bespoke support is located at 42,385 and 42,253. This is close to the 78.6% pullback level of 42,272.
Conclusion: the bias remains bearish. 43,798 is prime resistance. A break of the wedge support at 43,220 and it is likely that the sell-off is underway. The prime target is 42,272.
Resistance: 43,528 (higher highs), 43,798 (November 13 base), 44,525 (swing high)
Support: 43,220 (higher lows), 42,385 (bespoke), 42,273 (78.6%)
