Today the Dow obliterated the level it was trying to hold last week. The area around 15,750 (noted by the 2 circles on the chart) held strong in December but price came crashing into that area and stalled a bit last week before giving way today The DJIA made it all the way down to the 200 day EMA (and through it).
As ever, the question becomes “what now?”
Price may, of course continue down without any semblance of a bounce (the futures at midnight are suggesting as much). However, price is more likely to stage a bounce from this area not unlike that experienced off the 200 EMA in October 2013. Whether the bounce will happen and/or be sustained is anyone’s guess, but to the extent it does happen, watch 15,500 first, then that same 15,750 area as potential resistance, If we continue lower, watch 15,250, 15,000 and especially 14,750 (held 3 times in 2013) for possible support to come in.