This is a weekly chart of DJH.
The Trend-line support was loudly trounced to day and the TV commentators are looking gloomy.
A 339 point drop in a day.
16489 to 15806 THAT is the interesting break. From the high Tuesday til Today’s low— That’s 4%.
Is a 4% correction from record highs, really something to light your hair on fire over? I don’t believe so.
In October, we traded down to 14,588.. On October 9th. Every one knows that we had the 1929 market crash in October.
We rallied almost 2000 pts from that low in over 4 months!! Why can’t we have a 500 or 1000 or 1500 pt pullback?
The Dow futures have support at 15,800 and then 15,600. I’ll be a buyer at both levels.
But I’m not going to close my eyes and hold it. I’ll buy it with a sell stop.
15,565 is a 50% retracement of the Rally which started after October 10th lows. Is it a guarantee that that’s where the bleeding stops? Absolutely not, but its a good place to get long on a speculative trade, risking 100 to 150 pts to the down side.
CER