50% Dow Retracement: 1982 – 2009

Here is something to mull over: Technically, 7,470 in the DJIA is the 50% retracement of the entire bull market that began in August 1982.At 7,100, we not only cut in half the October 2007 highs of 14,198.50, but we have given back 50% of the 27 year move from the start of the big bull market of the 1980s to yesterday.That is astounding . . .

Dow Industrials 1982 – 2009dow-fibs.gif

Originally published at The Big Picture blog and reproduced here with the author’s permission.

2 Responses to "50% Dow Retracement: 1982 – 2009"

  1. Richard   February 24, 2009 at 7:20 pm

    So, is this a double bottom? Or, if you look at the S&P500 chart you’ll see a double bottom and a double top. Does all this chart reading mean anything?

  2. Anonymous   February 24, 2009 at 7:55 pm

    Chartwise, (according to Dennis Gartmann, who is always talking about “the box”) this retracement should at least fall into the range between the fibonacci 50% line and the next lower (which are the boundaries of the box). I can’t read it. 62% or so? at around 5,950 on a monthly chart.I expect worse, of course, but this would be the nearest downside target.