The Dow Jones Industrial Average has taken another beating the past two months, dragged down primarily by some of its component companies, including: General Motors, Bank of America, Citigroup, and JP Morgan Chase.
This non-stop slide is part of the reason for the US Dollar’s new-found strength, as the sell-off in assets created by market uncertainty and also funds’ need to fulfill redemptions creates a big demand for cash. And currencies respond to supply and demand just like any other commodity.
So where is the US market likely to find bottom?
The next key support level is waiting at 6556. What happens when we get there with be critical. If this support level holds, we could potentially see a bounce back up to 7030. If not (and if it instead re-tests as resistance), then the coming weeks could take us down as far as 5788.