In spite of the market moving down, the Indexes are still holding some important support levels as we will see today.
First, the DOW. Note its price chart. Yesterday, the DOW exactly hit a Major Support Level and then bounced up at the end of the day. *** This leaves open the possibility for the DOW to move up to its previous all time high.
The Transportation Index is below, and its pullback in the last few days didn't even take it to its support line. Technically, the Transportation Index is still in its up trend.
In our last chart, we'll look at the Russell 2000 index.
In the past few days, it broke its Rising Wedge to the downside which is negative.
However, yesterday, the Russell dropped down to a support level as seen on the chart.
This becomes an important level for it not to break to the downside and an opportunity for a bounce up from here.