Mid-week broader market forecast update, September 25, 2014.
Our research now shows the next downside short term target for the DJIA is 16850. The lower 200 day support level sits right around 16600. This is a 50% mid line cycle neutral point between a low established in early August around 16375 and recent high within the last week just under 17400. Based on our research 16850 should hold. A break below would bring us down to the 200 day at 16600. This is a repeat move that occurred last April after the powerful rally off the February low. So far nothing has been violated to make us think a large correction has begun. The next employment report might be a catalyst to bring us back to retest highs again over the short term. It’s all about the FED. Next broader market update will be Sunday night.