DOW wont break 7500 support

Discussion in 'Trading' started by TradingPilot, Oct 11, 2008.

  1. I Don't think the Dow is going to have enough steam to break through the heavy support area around 7500.

    What do you guys think?
  2. hopeful


    Based on the history of crashes it would seem very unlikely that such an area would be penetrated as we have already reached , in percentage terms , the same low levels as previous crashes. History repeats. I'm banking on it!
  3. Let's see a higher close before we make predictions.
  4. If this thing gathers the momentum of 1987, then yes.
  5. morreo


    No freakin way. How about a poll?
  6. axehawk


    Why? Just because you drew a line across the chart at the 7500 level?

  7. Which crashes are you referring to? The last crash where the bank system got in trouble was in 1929 and it didn't bottom for a couple of years.
  8. Excellent point. History repeats so says "Hopeful'. But which history?

    Historically, crashes have behaved pretty much the same way -- the thing that crashes loses about 75 percent of its value over time before recovering.

    For instance, the Nasdaq peaked at about 5,000 just before the tech bubble burst in March 2000. It bottomed out two years later at about 1,200, having lost 75 percent of its value.

    Does that mean that we're looking at the eventuality of Dow 4,000?

    "Dow 4,000 would be an insane extreme, but this will get worse before it gets better," Hanson said. "I say that not with any fundamental evidence, but because the consensus seems to think that and they vote with their dollars in the market."
  10. patoo


    Yes, we are getting ahead of ourselves.

    Until the panic stops "its all down from here"!
    #10     Oct 11, 2008