US market closed down 265 points on Wednesday. Bad news seems to be appearing at the same time. China reported a weaker than expected retail sales numbers and a dip in industrial production during July. The US Fed appeared to be less optimistic in the recovery and weakness is appearing in the US economy. CISCO reported revenue that fell short of analyst’s expectation after the market closed. This will put more pressure on the market.
The Dow Jones Industrial Average has now broken through the 50 day moving average and is set to test its 200 day moving average at 10,263. This will be a key level to watch for Thursday trading session.
The phase chart has made a U-turn from “Accumulation” phase. It looks likely that the index will test the 10,000 level soon.
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