Charting Outlook: Breakdowns signal Dow correction starting

The US30 staged a major rally up off its election overnight low near 17,500 mounting a huge charge on 20,000 in the process becoming extremely overbought. In recent weeks, however, the rally has faded with an ascending triangle accumulation pattern offset by a negative RSI divergence. This week, the US30 has started to break down with the index taking out uptrend support near 19,900 and falling toward 19,825 while RSI falling back under 70 signals a correction getting underway. Next potential support appears near 19,615 then 19,395 a 23% Fibonacci retracement of the post-election rally. CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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