In the last review I had argued in favor of corrective rally by year end; also mentioned 3.9k as near term stop for the bulls. The index failed to move upward as anticipated & also broken the stop in quick time. In fact AORD was the only major index to break below the recent October low, indicating continuations of the downtrend contrary to our views.
Observe the inlaid weekly chart. The prices are near to its lower end(3400) of the parallel channel (dotted), suggesting possible respite in the extremely near future. However if broken downward then the index is likely to fall into steeper falling parallel channel (marked in blue) where the lowest value of the lower end trend line is near 3k.
On the monthly chart, the index is near to its critical long term support line, the value is also near 3400; below that 3k.
