Beware beware on the Dow Jones stock market trend! If you did follow my earlier post that DJ broke the short term 61.8% fibonacci support , I warned that the Dow Jones can head down to the 100% support of previous low which is 11,732. It has indeed come down to this support level.
You should now appreciate the power of fibonacci support lines now! It can be used to assess the support levels of a down trending market and determine if it will rebound or continue to fall.
Will it fall further?
Now, it is a critical level to watch now! DJ is still near a critical support of the low of previous two valleys, and this is the support level of the plunge beginning of this year.
As I am looking at the market now, it is still going down and it possible that it can break this year low support too.
If it does, another lower low is formed and the market will go down further till the 10,683 level. Beware beware and cut your long position if you have. Smile if you are holding short position now.
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
