In my previous post on the Dow I projected a possible move down to the .786 retracement level of the final up move. Since then I have noticed three things.
First, price has stopped approximately 145 points below each retracement level in pink. If this pattern continues, price could be expected to stop just below the .786 level at 23,800.
The second thing I noticed is that the 1.618 extension of the most recent down move is 23,798.
Last, I noticed that if we are in an ABC correction and the C leg were to equal the A leg, then the C leg would end at 23,800.
This level is also at the top of an area of support.
So while I still think price may extend down to the .786 level, as per my previous post, I qualify my projection based on these factors and now anticipate a move slightly lower to the 23,800 level.
First, price has stopped approximately 145 points below each retracement level in pink. If this pattern continues, price could be expected to stop just below the .786 level at 23,800.
The second thing I noticed is that the 1.618 extension of the most recent down move is 23,798.
Last, I noticed that if we are in an ABC correction and the C leg were to equal the A leg, then the C leg would end at 23,800.
This level is also at the top of an area of support.
So while I still think price may extend down to the .786 level, as per my previous post, I qualify my projection based on these factors and now anticipate a move slightly lower to the 23,800 level.