I must admit that I never thought we'd see the Dow below 7000 ever again, except in the event of a nuclear strike or some such unlikely scenario. Now it appears that not only may the Dow fall below this level, but potentially there's a real chance it may tank to under 6000. Unbelievable stuff. Scary even.
Those who scoff at the above obviously need to do more research on company P/E levels. Basically they're still way too high, even with the Dow at 7700.
Read & weep, people. But sometime the piper had to be paid - regrettably, this time is now.
In any case, one market analyst (Colin Twiggs) today stated that the Dow's next major support level is 7379, from July 1998.
Should this level fail to hold, the next support level I believe, is in the mid six thousand level. If this then is breached, back into the five thousands we'll go.
Who amongst us is brave or foolhardy enough to claim this won't or couldn't occur?
