Dow Jones below the MA20. Caution. At least -1.40% underway.

630
DJI has crossed below the MA(20) for the first time since late March. 1D has turned neutral (RSI = 50.457) calling for attention.

Since the aggressive bull market took a pause in January 2018, Dow Jones crossed below the MA(20) 12 times. The dynamics of each break out vary but on average the price dropped -4.94% before the next sustainable rise. The highest decline was -14.10% (December 3, 2019) and the lowest -1.40% (May 29, 2018).

Since the index has already pulled back -0.94%, it is fair to assume that more selling in underway.

If it drops to the minimum -1.40% then the bottom will be made around 26,050.

If it drops to the average -4.94% then expect a bottom around 25,100.







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