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July 07, 2022: Market Minute: Major indexes pullback to key support levels

Several major equity indexes have now pulled back to key price support levels. The NYSE has declined down to the early 2020 price peak of 14,000. The Dow Jones Industrial Average has pulled back over the last six months and is now on the support level of about 29,600.

The same retracement down to key support levels has developed for the broader Dow Jones Global Index (DJW) and the Wilshire 5,000 composite.  Both have pulled back to important support levels.  For the DJW that level is 444.2 and for the WLSH, that key mark is about 36,600 (Chart 1).

The S&P 500 has also landed on key support at 3,600 (Chart 2). 

Bottom line:  At this time, we do not know if these levels will hold.  Nevertheless, having the major equity indexes pulling back to these key past support levels do provide one of the first probabilities of the completion to the current bear correction.