After breaking down through Channel Up support at 10565 (E), the Dow Jones Industrial Average has traded lower to the Forecast Support between 10373 and 10137 (F) on the 240-minute time frame. This area is containing current intraday movement and could be the base from which a correction higher begins. By looking at a shorter time frame, the support within the Forecast area may reveal where a bounce could occur.

The 60-minute time frame has started to show the loss of bearish momentum as the 10285 (B) level is supporting the intraday sideways range. The sideways movement could trade through the downtrend line of the Channel Down at 10343 (A) and trigger a pattern breakout. The challenge for upside follow-through will be the four-bar Initial Trend reading which would increase the likelihood of prices exhausting between 10690 and 10740.

However, if the downtrend line of the Channel Down can hold as resistance, look for a move back lower through not only the near-term support at 10285, but also towards the 10020 support of the lower line of the pattern.

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