It seems like a really long time ago now, but it was less than a year and a half ago that the Dow Jones Industrial Average hit its all time high mark of 14198.10 on October 11, 2007. Those familiar with technical indicators will recall that a 50% retracement is a very significant mark for the direction of the market going forward. A 50% retracement from 0 to 14198 would put the Dow at 7099, and we came very close today with the intraday low at 7105. This support line could prove to be bullish if the Dow holds these levels then from a technicians perspective it could prove to be a market low. However, beware if the Dow falls below 7100 because once that support is broken it could fall very quickly.
The Dow Jones Industrial Average has not been at current levels since 1997, and the next few days could be key to understanding just how low it will fall. Tread very carefully in this sort of market environment.