The Dow Jones Industrial Average is facing another plummet as it hovers precariously close to November’s closing lows and the next few sessions will seal its fate along with other indexes, Edward Loef, technical analyst from Theodoor Gilissen Bankiers, told CNBC.
“You see the selling pressure mounting and we are now running out of time," Loef said. "I think we will break eventually below the lows of November because the 8,000 threshold has broken.”
The Dow [.DJIA 7555.63 3.03 (+0.04%) ] closed at 7,555 Wednesday, only a whisker above the critical November low of 7,552, which many analysts agree is holding the index back from a sharp leg lower.
The next few days should reveal whether the index can hold, but prospects are bleak, according to Loef who cited the Dow Theory as his guide. The theory, derived by Charles Dow, is used by technical analysts to predict stock price movement.
