Price And Time In The Dow

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We don’t like to be too repetitive with our blogs but this is something we found intriguing enough to go along with what we covered in just our last blog Wednesday.

We talked then about the Dow Jones Industrials reaching just ticks through the 50 pct retracement of the entire down move from October 11 2007 to March 6 2009. What we discovered later is that there is also a Fibonacci 50 pct time sequence that was likely satisfied at the same time. If the down move from Oct. 11 2007 is 512 days and the recovery from the March 6 2009 low to this week’s November 11 high equals 250 days we find that ratio to be 48.8 pct. That seems close enough for government work to us to make mention of.

Down Move	10/11/07	03/06/09	512
Up Move	3/6/2009	11/11/09	250
Total Move	10/11/07	11/11/09	762
Retracement % Days of Total Move			32.81%
Retracement % Days of Up Move/Down Move			48.83%

This might be something to be aware of when considering market positions. The combination may help determine when market moves are due to come to an end. Nothing is perfect but this could be a powerful weapon to add to the arsenal.

Good trading to all.

Jeff
CB&S

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