The Dow dipped significantly yesterday below our pivot point at 30700 and below the 200-period SMA with volume running higher and the volatility index (VIX) surging to November 2020 peak levels. Markets have been vulnerable to a setback for some time now given some of the sentiment data that we monitor. Moreover, following Fed Chairman Jerome Powell’s dovish remarks yesterday, we expect this weakness to continue today ahead of fourth-quarter GDP, initial jobless claims, and new home sales figures to be released later in the day. Near-term support levels to watch are the 30090 and 30000. On the daily chart however, the next area of support from a technical perspective is the pre-election 29400 to 29200 upper-consolidation area.
Support: 30090/ 30000
Resistance: 30235/ 30400
