The strong 20% rally from March lows brought the Dow Jones index exactly to the 38.2% Fibonacci retracement level of the latest significant decline. That was the first critical resistance, and it looks like it held comfortably.
Since this resistance held, it appears the latest rally was only a correction, the so-called bear market rally.
The next support is now at 20,900 USD, and if not held, the index could decline toward the current cycle lows of 18,200 USD. If the price drops below this level, the bear market would be confirmed, and the decline will then most likely continue.
On the upside, if the mentioned resistance of 38.2% Fibo (which is at 22,550 USD) is taken out, further rise toward the 50% retracement level of 23,900 USD could occur.
