Stock Charts: New Low and Major Downtrend (DIA)

September 23, 2022, 12:27 pm EDT

New Low and Major Downtrend (DIA)

While Dow Jones is making a new 52-week low with -600 points down now, it opens up a possibility for a major downtrend ahead. 

Although the next support could be around 267 for DIA as shown, the major downtrend could pull DIA into the second support at 183, its second support. Due to a lack of intermediate support, the downtrend could be fast and sharp. 

It also means about -50% down the top that was made by January 2022 at 368. 

S&P 500 and Nasdaq should follow the same pattern. In fact, Nasdaq is the weakest index so it could drop more severely than others.

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