The Dow Jones Industrial Average, S&P 500 and the NASDAQ Composite indices fell sharply last week. The Dow Jones and S&P 500 were down 1.2 and 1.6 per cent respectively. The NASDAQ Composite was beaten down much badly. It was down 3 per cent.

The sharp fall last week has jolted the market sentiment. Crucial supports are coming up near current levels. Will the benchmark indices sustain above the support or break it to extend the fall? Here is our analysis:

Dow Jones (46,987.10)

The fall below 47,200 is negative. Failure to rise back above 47,200 immediately can be bearish. In that case, 46,300 can be tested this week. It will also keep the Dow vulnerable to break 46,300. Such a break can drag the index down to 45,500 in the short term. This could be an early sign of a trend reversal.

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