Dow Jones Industrial Average short to medium term view

The Dow respected resistance at 8400, signaling selling pressure, and is now testing support at 7900/8000. Declining volume indicates that support is weakening. Failure would signal another test of the November low of 7500, while respect of support would again test 8400. In the long term, breakout below 7500 would offer a target of 6000; calculated as 7500 – ( 9000 – 7500 ). Confirmed if the 2002 low of 7300 is penetrated.

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