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Friday, March 06, 2009

The Dow

I was looking at charts this morning, and a few key levels to note on the Dow are:

> The Fibonacci Extension (FE) of 2008's high/low:
5222.26
(seems scary and impossible, but who thought we would be under 7000 6600?)

> The halfway point between 2008's low and the FE:
6335.82
(just a stone's throw away from current levels - see the white dashed line on the chart).



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6 comments:

Waycokid said...

If you take the Dow high of 14200, the 61.8 Fibonnaci level to the downside is around 5400.

That could be bottom.

Todd-O said...

We may test that halfway point today! Thanks for the analysis.

Any updates on RJ?

Trader-X said...

Todd - no word from RJ, but I did email his daughter. I will post an update when I get one.

john said...

On the SPX, if you draw a line under the '74 and '82 lows, that line is at about SPX 540 today.

By the time market kisses that line from above (assuming the post-2007 down trend continues) the SPX would meet that line at about half way to the FE.

Should it be shocking if the post '82 credit expansion hump on that chart return to trend?

Option Maestro said...

Great post! I hope we don't test that 61.8 Fibonacci level! Check out my blog!

Zen said...

Thanks Trader-X. I did something similar on my blog with the S&P (I use fibs to calculate geometric points on a chart). I also linked to another blog that shows the Dow 61.8% retracement from the 1930 low.

http://tradinginzen.blogspot.com/

Not tooting my own horn here... I hope it is okay to post blog links. Just trying to share similar analysis.