The Dow Jones Industrial Average is set to sink to 6,400 within the next few weeks, Nicole Elliott, technical analyst at Mizuho Corporate Bank told CNBC.
“Any moment now I think we’re going to break lower,” Elliott told “Europe Tonight.”
“I expect this to be possibly before the end of November or very early December, I mean we’re almost on our way now and it’s just a question of how far down do we go,” she said.
The Dow [.DJIA 8424.75 --- UNCH (0) ] managed to close above its October low of 8,175.77 on Tuesday, but slipped below that level during the trading session. Market watchers are divided on whether the recent lows mark a base from which to rally, or a pit stop on the way lower.
“This is not a base at all, we’re nowhere near bottom yet,” Elliott said.
After the initial sharp slump the index could fall further, but in a more gradual decline, according to Elliott.