10,335 Marks A Pivotal In the Dow
I spotted something interesting today on the chart of the Dow Industrial Average.
Zooming out 3 years, I drew a trend line from the peak down to where we are now and used the fibonacci tool to measure the retracement of the trend. What I saw next is something interesting…
You can see from the chart above that both the trend line and 50% fibonacci level are crashing right into each other (10,335), and it just happens to be where we are in the market right now.
In other words, what develops in the market over the next couple of weeks will definitely be interesting. Will the market get rejected or will it move up and create new support at a higher level?
More on this topic
(What's this?)
Dow 10,000: Buy it, Or Sell it?
(Investment U, 10/19/09)
Dow Industrial Average’s Top 3 Dividend Companies
(ModernGraham.com, 10/20/09)
Are Your Ready for the Big One?
(, 8/19/10)
this is a truly ridiculous chart. the spread between the two plotted events is so far that they are completely unrelated to one another. no wonder the conclusion is “will the market get rejected or will it move up”
Which spread? If you're talking between the trend line and 50% retracement, I don't think 6 points is far apart considering the roughly 8000 point range we are looking at.
Also I've always waited for confirmation before concluding a trend change, and I should have made it more clear that this is just a look at where we stand sitting hitting our peaks a couple years back.