The Indexed topped at mid 2006 ( top labeled 1) and lost 60 points or about 23% by mid June a bottom (labeled 2) was made and the index climbed higher to recoup most of decline.
Currently the index is trading just below the 50 daily moving average (DMA), RSI trending down, PPO still positive but seems to be ready to turn back down. Short term support at 230 - where the green and pink lines cross each other. Failure to hold the 230 level will indicate that the correction is not over and lower low (lower then 2) will follow. A successful retest of the 230 level will indicate the correction is over and higher highs should be expected.
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