Monday, November 23, 2009
Dow Jones ($INDU) At Crucial Pivot Point
The Dow Jones Industrial Average $INDU has now put in about a 50% retracement from its '07 high to March '09 low. Not only in price...BUT in TIME too. Those that know of the famous chartist/mathematician WD Gann Price Time Studies ~link~ will understand. It took 17 months for the decline & 50% of that time 8 1/2 months to retrace 50% of the points, which also coincide to the downtrend resistance line. So what's next? if one follows this belief, it would mean in the next 4 months or so a 50% retracement should ensue? DJIA 8500? Or 12500? The trade for 2009 has been weak dollar = strong stock market. If that continues and the Dollar ($USD) breaks 75 support, we could see a rally into 2010 and a Dow @ 12500, if the Dollar rallies 8500.
*click chart to expand images