The Dow,REG NMS,and Fibonacci

If we have another push downward in the markets,I think these areas will be the next to be taken out.The obvious one is the first real test of 12,000 since it has been a while.If we don’t get a bounce from this current level and the prior lows,it’s quite obvious 12,000 will be tested next.If and when we break lower!The 200 day now sits at 11782.10 which will be the next level of interest.Anything below that and were looking at 11750 area and 11500 area(that would really hurt some longs if it actually happened.Tread carefully Monday with REG NMS now in effect there could be a repeat of last Tuesday’s action if volume is heavy and the exchanges can’t handle it.Unless this whole thing is just a big hiccup and the markets find support here,I think we head lower regardless of technical issues or not.(the white lines in place are Fibonacci lines I have drawn from the June and July lows to the February highs.The 50 % retracement line coincides fairly well with the 200 day sma although it is still rising at the moment.

Average rating
(0 votes)