DOW monthly chart – technical outlook part 2

The DOW should find valid support in the 9800/10000 for now with the help of central banks stepping up with a full scale approach, which should be more than just rate cuts. We are reaching target areas and strong support levels for now and the markets are in a panic mode that supports by sentiment levels. The TARF plan will temporarily stabilize the drop in financial stocks. We need two lower closes in the XBD to deliver a TD SEQ 13 daily, one day will be today. In monthly terms, we are about to reach the 1.38 factor of wave 1 or A down with roughly 3000 points and the 9800 has been good support at 3 other occasions. Most importantly, the fact of the VIX at 50 (very likely this week) will help to support a low for now and deliver a strong bounce within a few days.

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~ by behindthematrix on October 6, 2008.

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