DJI broke down the first level of support!
While everyone in the social media is talking about another market crash in 2021, and the inverted yield. DJI is showing signs of weakness and volatility which can continue for some time.
Scenario 1 - downtrend:
DJI broke below the 100 moving average, it has also broken the daily support trendline. This indicates either a downtrend momentum is happening or a correction to next previous resistance level that should act as a strong support.
Scenario 2 - volatility and continue the uptrend
DJI would just fall into volatility for 2 months and then continue its path to uptrend.
Scenario 1 - downtrend:
DJI broke below the 100 moving average, it has also broken the daily support trendline. This indicates either a downtrend momentum is happening or a correction to next previous resistance level that should act as a strong support.
Scenario 2 - volatility and continue the uptrend
DJI would just fall into volatility for 2 months and then continue its path to uptrend.