Dow Breaks 10,000
Friday, February 5, 2010 at 12:10PM The DJIA broke 10,000 on the down side this morning and it remains to be seen whether this is the beginning of the end or the end of the beginning. The index is hesitating around 9,950 (at noon). Any real bad news could send the markets plummeting. Or maybe this is one big manipulation by the big traders, driving the markets down to support levels and scaring away the little guys. Great if you believe in conspiracy theories.
My gut feel says this is the beginning of the end ... and I have a pretty big gut. At least my wife says so.
UPDATE:
I remember Larry Williams once say that traders always expect the big crash to happen and it never does. (Well that's not completely true: 2007-2009 is a good example). However, fear does play a big part in the stock markets. So below is my reading of how the DJIA chart looks (5 year chart):
We are at a fairly significant cross-road as you can see by the red lines. It is quite likely that fear will subside and the DJIA will rebound off the support level. Or not.
Steve