Monday, January 21, 2008

Price Projections for "Black Tuesday"

The Asian markets are down again and the US futures are down huge! What should we expect for tomorrow? Below are the ABC Fibonacci expansion projections for the S&P 500, Nasdaq 100, Russell 2000, and Dow 30.

In every chart we are already into the 1:1 expansion point, which means that the next level will be the 1:1.618 level. The areas are shaded in grey. If we hit those levels on some panic type selling and bounce, that will be a good sign. If we go down to the low end of the shaded areas and stall, we are probably building cause to break below them. That will not be good for anyone (except for any greedy/piggish bears out there).

The Line in the Sand:
S&P 500: 1248.53
DOW 30: 11395.16
Nasdaq 100: 1728.54
IWM (Rus 2000): 60.59

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