The Dow Jones Industrial Average, CAC 40 and FTSE 100 are approaching 61.8% retracement of their previous major rallies.

(DAX is still much above the 61.8% level).

It is very essential that these levels hold.

Otherwise, we may have a capitulation in world markets.

If these levels hold, we may see short-term bounce back in most equity markets.

CAC:



DAX:



DJIA:



FTSE 100:

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Dow just touched the 61.8% level!...9981~!

My calculations show a level of around 9872.

high - 14198.1 (11th October 2007)
low - 7197.49 (10th October 2002).

difference - 7000.61.

0.618% of 7000.61 = 4326.38.

14198.1 - 4326.38 = 9871.72

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Sirji we take your level. Uncle Dow did low of 9921. lets wait for close.

US equity markets aren't very particular about levels.

They can miss targets/key-levels by a few percentage points.

One will have to wait for a few sessions to decide if the level is going to hold or not.

Of course, if the index keeps crashing, we can be certain that the level has been violated....

Also, in the long-term, I don't expect this level to hold.

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Alchemist ! your calculation level is also broken? Further any support for Dow?

or USA entered in recession?

Seeing the today's situation of DOW almost 600 points down right now. If it closes at this range, we might hit circuit tomorrow.

What do you think? Is it good to go long at opening of circuit?

What is circuit for DOW ?

No supports nearby.

Recession?

US is already in a recession....no one should have any doubt about it now.

Now we should be asking...."Is US heading for a depression?"...

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Circuits are rare.

However, if I see one, I will take delivery of a few stocks.

As I said earlier, don't use leverage. The downside in panics can be significant.

Buy only if you can hold for at least a few weeks.

I don't think there is a "Circuit" in DJIA.

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Thanks for your patience and replies!

You should see the traffic today at e-investing! Another indicator of market, that we have some major fall or rise!

Another surpise, my REP power is 11 and yours 10. .

Can we know what you are buying? Just put names, no need to explain any logic or why you buying!

Just names!

Another important point: There is no SHORT Selling, it is all actual selling on DOW imagine the world with Short sellling!

Dow Industrial didn't hold the 9870 level.

In the first half of the session, it tried to stay above it, but selling proved to be too strong in the second half.

See the dark line...that's the 9870 level.

(Dashed line is previous close).

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That means we are heading below 10,000?. .

Not sure about 10000, but SGX NIFTY (down 170 points today) indicates we may open near 11100-11200 today.

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Dow Jones Industrial down 679 points (7.33%).

One of the biggest falls in history of the index.

Get ready for some real action tomorrow.....

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This is one of the video analysis of Dow Jones form 1930. He is good. I learned a lot form his videos!

http://www.topdogtrading.com/?p=256

He has weight!