How High Could the Dow Bounce?

I've been doing some Fibonacci retracements on the Dow Jones Industrial Average. This system gives you mathematical support and resistance levels.

I'm hearing a lot of bearishness from people I respect. But it wouldn't surprise me to see the Dow rally this week and maybe next week. The question is, how high.

The answer -- from a Fibonacci point of view anyway, depends on where you start.

The really short-term view ...You can see that the Dow has retraced all of its move from April. In this, a very bearish scenario, I'd look for a bounce to 12,810 and then 13,075 at the most. MACD has turned short-term bullish, supporting a rally.

The short-term view ...

Measuring from the start of the Dow's big move in 2006, we are still potentially in a bull market. 12,439 is what to look at next. You'll note that in this time-frame, MACD (momentum) is still bearish.

The long-term view ...The long, LONG term view ...This is just stuff to think about this week.

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