Dow Fib 50% retracement measured from Oct 9th 2002 (72.863) to the high Oct 11th 2007 high of 142.80 shows a very strong support level of around 105.00.
Don't believe it could go there? Have a look at the DJIA chart from May 1999 through to October 2002 and you will see the bears could draw this out over the next 2-3 years very easily.
Considering the potential fallout fron a world economic aspect ths is possible. The saviour may be the strong growth in China, Asia generally and India and the vast incrase in superannuation funds, this money must be placed somewhere and many will choose shares.
Set a chart 10 year chart up and you will see what I mean. I don't think this is over by a very long way. The game is only in the first quarter IMO.
saturday matinee, page-78
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Last
7,987.4 |
Change
66.100(0.83%) |
Mkt cap ! n/a | |||
| Open | High | Low |
| 7,921.3 | 8,000.0 | 7,921.3 |
| XJO (ASX) Chart |