Monday, March 2, 2009

Back To 1996?

The SP500 dropped below the April 11, 1997 low today. I have mentioned in one of my earlier post that if the DJI drop to its April 11, 1997 low of 6391.69, the SP500 will be much lower than 737.65. The question is how low? Well, no one know. But looking at the 30 years monthly chart for the market indices, the levels in the month of July to September 1996 could be some possibilities for the DJI & SP500. Although it is too early to draw any conclusion that the SP500 will go down to the range of 625-650, and the DJI to the range of 5300-5600. But those are some of the key range to watch for. Here are the charts. I have circled what I believe are key levels and note how the Fibonacci retracement levels coincide with most of these key levels.

Click on the chart for a larger view.











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