Last Week Recap

Last week the global stock market endured another wave of sell-down. The Dow Jones Industrial Average was down -3% for the week, while S&P 500 slumped -3.9%. Both the Dow and S&P turned gave back all their gains and turned negative for the year. Disappointing earnings from some of the big companies like Amazon and Alphabet set off concerns from investors that company earnings have peaked, leading to the brutal sell-off in October. Investors are also on edge about the upcoming mid-term elections in November.

Technically things are looking gloom for the Dow Jones Index in the short term, prices broke though the support at 25000 and the next support could be seen at 24400. Should the market continue to sell off, we will be looking at an extremely strong support area that held up the market from February to May, price in the region of 23570 …