So does next week portend a Black Monday of mythical proportions or do we see, yet another, Mutual Fund Monday with a huge bounceback rally? Lets look at a few djia charts.
First the really long term
Long Term Dow
The Fib retracements are from the top of 1929 to the top of 1987. The blue Line is the trend line that we have been stuck around for the past few months. I have drawn it with a figurative crayon, rather than a virtual pencil – as these LT trend lines need a bit of latitude. The interesting line is the 423.6% retracement line, which you can see in the next few charts. This is a fairly recent weekly:
Quartlerly Dow
Then a quarterly from 97
Quartlerly Dow
Then the last 60 days.
60 day Dow
so what next?
As you can see the Blue LT trend line has failed, as has the attempt on the 423.6 retracement. We may get retests, and probably kisses, against these lines. I think that there is also a chance that we go to test the 64 Quarter SMA (around 9,187).
