Where Now, Mr. Dow?

Andrei Pehar from fxKnight.com at 10/20/09

Looking at a very long-term view of the Dow on the weekly chart, price reached a peak high on Oct 7th, 2007 at 14198.00 and reached a low on March 1st, 2009 at 6474.09.  As of this writing, the Dow is currently about half-way between the 38.2 and 50.0% retracement levels of this move.

On Oct. 2nd, 2009, price on the Dow hit the 38.2% level of the weekly Fib, and the 61.8% retracement level on the daily Fib at 9420.69

Last week price snapped to the 118% extension on the daily and bounced down.

The long-term targets to the upside would be the 10334.08 at the 50% level on the weekly Fib, and the daily 161.8 extension at 10483.90

Intermediate upside targets along the way would include the 127% daily Fib level at 10134.25 and the 138.2% level at 10224.25

The long-term target in a downside scenario would be a return to the 38.2 weekly Fib, and the 61.8 level of the daily at 9420.69

Support levels to watch along the way include 9917.29, 9727.65, and 9610.33