The following is Technical Analysis for the Dow Jones ( DJIA ) for 2/23/09
Dow Jones Support & Resistance Levels - February 23, 2009
Resistance Levels: 7449, 7500, 7800, 8000
Support Levels: 7286, 7181.47
The Dow Jones made a new 52 week low on Friday hitting 7249.47 but managed to close above the October 9, 2002 closing low of 7286.27. The Dow Jones has major support down in this 7200-7400 area so expect to see bounces when these levels are hit. The October 10, 2002 intraday low was 7181.47 so if the Dow was to break through that price, you would get additional selling pressure all the way down to the 7000 area. On the upside, the Dow might struggle at 7500 but the major resistance area will be at the 10 day moving average around 7800. It's hard to say if the stock market has hit a bottom yet because it appears the market is pricing in lower forward earnings for the S&P 500. Some say the S&P 500 will only earn $50-$60 in 2009 -2010 and if you slap a 12 p/e on that figure, you get 600-720. For More Technical Analysis - Go Here
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