DOW key level 24,000

Watching the DOW - again the markets selling off; The talking heads on CNBC - always bullish - are like deer in the headlights, they do not know what to say or do.

They are still looking for a rally - I think we are getting close but still a final shake out in the cards.  And a key level is 24k.  On the monthly we can see that the steep up trend's lower boundary is at this level (give or take a few hundred points).

DOW MONTHLY

1 . A significant break below 24 k would indicate a large correction is under way

2. a test and hold of this level will more than likely see new highs

Why do I think we may be close to a rally?  Look at the daily chart.

1. There seems to be a positive divergence forming
2. It looks like a falling wedge  Which has bullish implications (click on link for explanation from stockcharts.com)
3.  Falling wedges tend to have a false break out in the direction of the wedge, which if it happens will be the final wash out before a rally