Memories of 8000 and 6500

Tuesday, February 9th, 2010 | stocks with No Comments »

The rebound today signaled what could be the start of another consistent period of economic recovery and bullish moves by the Dow.  The reason is simple, we broke through a strong support level of 10,000 yesterday, but the market statistics were too solid to let the markets fall even further.  The same exact thing happened at 6500 when the markets fell below the point for one day, but followed the day after with substantive gains that carried through from March 9th 2009 to May of 2009.  Then once again, the same thing happened near 8200, and it seems to be happening again at 10,000.  Pictures louder than words so just look at the striking similarities below:

EDIT: Just realized an interesting tidbit that each of these moments happen to come near the 10th of a month, following a month of relatively consistent economic contraction.  Take what you will from that.

March 2009:

July 2009:

February 2010:


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