Recent weak economic data triggers Global Stock correction lower last 5 days
- Is the correction over?
- Time to buy the dip?
The Major Global Stock Indices have dropped on average -2.2% last 5 days
- Dow Jones 30 losses over -840 points or (-3.10%) last 5 days
- German DAX falls near -3% last 5 days
- Japan Nikkei 225 falls near -2.4% last 5 days
Most Major Stock Indices have dropped lower last five days,
- This can be seen as a normal market correction after strong August to September gains.
US Dow Jones 30 finds support near the "known" technical support level at 25,980 (just happens to also be very close to the key 61.8% retracement level)
- This key 61.8% area is a widely known price zone buying opportunity for those investors who believe the market correction is now over and want to open new long positions.
- Its also the key area for short sellers to watch for a break below to open new short positions.
Summary: The Dow Jones 30 can be used as a leading indicator for global major stock indices. Provided the Dow correction is over or not, it’s likely that EU, Asian stock indices will follow the Dow’s next direction move.
To Buy the Dip or Not???
Source: FXGM Investment Research Department