Update On Targets

After listening to Terry Laundry's update today, I pretty much agree with his assessment of the near term. I don't agree necessarily with the intermediate term outlook, but one step at a time.
I wanted to take a minute and provide a list of downside targets that I have for the Dow and SP500.

These targets are based on a methodology developed by Jeffrey Kennedy of Elliott Wave International. He found that markets tend to turn at fib projections of the January range. Specifically, he uses the following projections above and below the January range: 0.618, 1.000, 1.236, 1.618, 2.618 and 4.236. I have found that these do work quite often and particularly when there are confluences with other fib levels.

For the Dow, we have the following levels:

7180, 6730, 6452, 6001, 4822, 2915.

We blew right through 7180, but we may see a bounce from 6730 or 6452. So the question is do we double bottom at 6452 do we go to 6001 or 4822. Interestingly, the 0.618RT of the 1974 low to the 2000 (orthodox high) in the Dow is 4841. If we do not find support at 6001, then the 4822 to 4841 is the next most likely support using this approach.

For the SP-500, we have the following levels:

718, 665, 579, 439, 213.

We are now on our way to 665. However, the 0.618RT of the 1974 low to the 2000 high is 631. So, with support there for the SP500, there may also support the Dow. It is looking like the most likely area for a bottom in the SP500 is 579 to 665, which also supports the 6001 to 6452 levels in the Dow.

Let's hope so. Even though shorts are making money right now. The devastation to the economy with a collapse to the lower levels is hard to imagine. Although I do believe the lower levels will be seen before it is all over.

Patience and Discipline!!