DOWI is still in the consolidation phase. With the end of QE3, and despite the low interest rate, there is no appetite for any risk. The market is taking its profit. There is yet nothing to fuel the market.
The red trend line is the medium term trend line. MArket will decline until FED's decide to increase its interest rate.
Therefore, the next step may very much be the following. Bellow 16045, which is 50% retracement of Fibo, DOWI may seek to reach 15800 as a first goal, before a little correction on the upside for mechanical reason ( by back for the end of the year for companies, oversold level etc) .
Then progrssively we may sleep again until MArch 2014 S3 level, ie 14400 ( 14359) Then we can consider that the consolidation time is over. Bellow 14400, we are in a different scenario, a medium term bearish trend
The red trend line is the medium term trend line. MArket will decline until FED's decide to increase its interest rate.
Therefore, the next step may very much be the following. Bellow 16045, which is 50% retracement of Fibo, DOWI may seek to reach 15800 as a first goal, before a little correction on the upside for mechanical reason ( by back for the end of the year for companies, oversold level etc) .
Then progrssively we may sleep again until MArch 2014 S3 level, ie 14400 ( 14359) Then we can consider that the consolidation time is over. Bellow 14400, we are in a different scenario, a medium term bearish trend
