The low on October 9th was 1633. The record high was 12/31/13 at 1846.
Yesterday we finally found support at the 1740 level, which was the 50% retracement. For now it looks like we’ve stopped the bleeding lower.
That could change should 1740 fail on another test lower Next stop below would be 1715 should that happen.
A lot of bears have sub 1700 in their sights. That remains to be seen, however. Friday’s unemployment number could be the catalyst for a test of that level, or the flip side, perhaps we climb a new wall of worry and take out the New Years Eve high… At this point, with the market trading a lot of emotion as well as searching for reasons behind every move, it really looks like a coin flip. My personal bias is we keep climbing the wall of worry while everyone jaws about why “this shouldn’t be happening. “.
Below is the corresponding move in mini dow march futures: The October low was 14,590.
The New Years Eve record high was 16540. Yesterday’s low tested 15335 which was the 62% correction. 15,585 had been the 50% .
I point this out because, although these levels are key, they don’t always work. Since they don’t always work, a lot of people turn their noses up against them.
I think that’s folly. These are good reliable technical indicators that help you pick objectives. Of course they don’t always work. Nothing does.
