The Dow Jones market index formed a “wedge” over the past several weeks and based on technical analysis, the typical resolution to this formation is a significant “break” out of the “nose” of the formation.
The “break of Tuesday, March 19th was a “break” to the downside which was quickly “blamed” on the adverse news from some of the FANG stocks, one in particular that had a release of client profile data to undisclosed recipients.
How did the formation know there would be a data breach? The short answer is “it didn’t”, however, since technically tracking the market for over (31) years, we can tell you without hesitation, “the market will always find an excuse” when it needs to move in one direction or another.
Where do we go from here? If the low made on Tuesday (24450) does not offer support, the market could see a re-test of the March 1st low of 24200’ish and possibly the Feb 9th low of 23400’ish
Stay tuned, we will keep you posted.