For perspective, here are some interesting numbers. The DOW futures high at 10,309 is just shy of its 50% retracement (10364) of the bear market decline. Today price is above both daily and weekly
R2 levels, and
monthly R2 is at 10425. You can count the number of times monthly
R2 levels are hit on one hand, never mind price staying above that level or finishing the month there. LOL buying into this.
So if I thought the 40 week low arrived and was bullish (I'm not), then price will blow through the 50% fib level overhead. It was within 100 points with today's high. What's the risk/reward here?
Prediction: November will be volatile.
cheers,
john
P.S. R2 levels are the large red squares.
Edited by SilentOne, 11 November 2009 - 01:46 PM.
"By the Law of Periodical Repetition, everything which has happened once must happen again and again and again-and not capriciously, but at regular periods, and each thing in its own period, not another's, and each obeying its own law ..." - Mark Twain
