Dow Reversal Gains Speed, Tests Below 26k: Are Bulls Done?

Dow Jones Talking Points:

– A bearish theme has emerged in US equities, and the Dow Jones Industrial Average has sold off aggressively over the past week following a fresh all-time-high set last Wednesday. The pace with which these declines have come in has been respectable, as we’ve already seen a -4.3% pullback over the past week. This, however, comes after what was a very aggressive bullish trend in Q3 that saw as much as 12.4% added to the index from the late-June low up to the October-high.

– There does not appear to be a single isolated driver for this move, and the fact that this weakness in US stocks is taking place along with weakness in bonds and the US Dollar indicates that something else is going on here. Also of note – we’re currently testing the 38.2% Fibonacci retracement of the Q3 bullish trend at 25828, and this comes after resistance showed earlier in the day around the 14.4% marker of the same major move.

– DailyFX Forecasts on a variety of currencies such as the US Dollar or the Euro are available from the Article source: