The Dow Jones Industrial Index has remained inside of this rising channel for the majority of the time since the late 1940s. It kissed the underside of the top of this channel in January at (1), where it created a large bearish reversal pattern.
The weakness of late has it breaking below 11-year rising support at (2).
A monster important “Test” of support is in play today, as the Dow is now “testing the monthly closing lows of December of 2018, and the intra-month lows at (3).”
If this support fails to hold, the next key long-term support level for the Dow comes into play at the 18,000 level, which was the 2014-2016 highs.
