Will Dow Jones drop 4000 index points?

 

Dow Daily Charts 25 June 2015

17992 the RSI at 70%

17965 50% retracement from 13 week high/low

17964 50% retracement from 4 week high/low

17943 14-3 day Stochastic at 50%

17908 pivot points

17901 38.2% retracement from 4 week low

17874 38.2% retracement from 13 week low

17819 current price

17698 4 week low

17579 13 week low

17397 38.2% retracement from 52 week high

17210 14 day RSI at 30%

17103 50% retracement from 52 week high/low

16808 38.2% retracement from 52 week low

16208 14 day RSI at 20%

15855 52 week low

Intraday turning down

Short positions below 17999 with targets 17869 and 17815 in extension.

The break below the support at 17999 triggered a bearish acceleration to the support at 17869.

Supports and resistances levels

18154 resistance
18070 resistance
17999 resistance
17819 Last
17815 support
17765 support
17719 support

Trend monthly chart

Dow Jones Monthly Chart May 2015

The Fed didn’t raise the rate. The market might go down 4000.The market might go up 4000 while the market might stay unchanged.

How traders react to a margin call?

So far, they easily accepted, because the market is growing and people are not paying attention to the fact that something someone obliged. Today Margin Call create additional credit obligation to the people who do not have too much experience with the shares. The losses increase and the situation varies from individual to individual, depending on their financial strength and willingness to losses.

I think that it will be the end of the year, if the new earthquake in world stock markets, the Dow Jones back to 4000 points. It may fall to 14000 points. The situation on world markets is definitely not good, so the question is whether even possibly very good results of US companies reflected in the stock price. Because prices can only rise if there is capital, and it does not have it because they are scared investors.

Conclusion

It is needed to be very cautious. Strong dollar could harm to the US economy. It is possible this scenario.

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