winks weekend wonderings, page-26

Sara, Volt has a few good arguments to suggest a dec 29 (or Jan2) to mid march down leg.

In regards to price I have been fiddling lately with the idea that since 1987 nearly all major resistance/support lines have been a function of multiples of the 1987 high of 2722. I put up a chart the other day demonstrating that the 2 pauses in the DOW since the May rally found support at 3x and currently 2x the 1987 high.....4x was 13610 and that proved to be major resistance near the top although the dow tested the other side of that level a few times.


We currently have a range of international gurus calling anything from 4000 to 6000 as the next target. I would note that twice the 87 high is 5444. This is also about a 61.8% drop from the all time DOW high of 14280.....IMO that gives me 2 good reasons to believe 5444 could be the next support level.

A chart showing 87 multiples resistance/support from the top down to now



2x 87 high was support for 6 months on the way up in 1996



the 87 high was resistance and then support for several years