Key Fibonacci Resistance Reached In Dow Jones Industrials

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We thought this was definitely worth showing this morning.

The chart above is a weekly Dow Jones Industrials – CASH. The significance we find is that today’s high is virtually right at the 50 pct retracement from the October 2007 peak to the March 2009 low.

The high posted intraday was made October 11, 2007 at 14,198.10 according to our data. The low was made March 6, 2009 at 6,470. The difference between the two is 7,728.10. Half of that difference equals 3,864.06 which when added to the 6,470 low makes 10,334.05 the 50 pct retracement level following our method of division, subtraction and addition. Today’s high as of the time we are preparing this has been 10,342.

We thought you’d all want to know.

This could be an important milestone reached and may turn into a likely spot from which a correction begins. We strongly suggest to watch for additional signals such as a reversal. We also strongly suggest watching and keying off of the U.S. Dollar. It too is trying to reverse to the upside as we are typing. Perhaps today’s closes will tell us all much more.


Good trading to all

Jeff
CB&S

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