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Dow Jones Industrial Average (600 points-fall)

Dow Jones Industrial Average
(600 points-fall)

A drop of more than 600 points in the Dow is very rare. The last time the Dow Jones industrial average posted a drop of more than 600 points was on 24th June 2016, the day after Brexit-Voting. The Dow has only...

Dow Jones Industrial Average (SMA90)

...closed more than 600 points lower eight times in history, with all occurrences taking place in the last 18 years.The eight times the Dow has closed more than 600 points lower all took place in the last 18 years. Half occurred during the financial crisis in 2008.

Another important point for the fall may have been that the Treasury yields rose, adding to worries about rates rising too quickly. Well, this may only be the mainstream argument for the moment (since the interest level is still well below a 4% or even 5%-level...).

To be sure, as the Dow has soared over its nearly 122-year history, point drops increasingly represent a smaller percentage change. The 685-points drop today, Friday represents a decline of just over 2.6 % for the Dow. As recently as 2016, a fall of 600 points on the Dow marked a nearly 3.4 % sell-off.

To have an idea about the next possible support-levels in the broader Index, the S&P 500, one might keep following index-levels in ones mind for the upcoming week at least (5th Feb. 2018 - 9th Feb. 2018):

200-day Moving Average: near 2,530 points
40-d Moving Average: near 2.715 points

Additional remark (see Chart above):The relatively sharp drop today in several Stock-indices also led to a slow reading in the Slow Stochastic-Indicator. Therefore >> a potential Snapback seems possible within the next days...IF the index is not falling through the Moving-Average support the Downside.