DOW

It bounced exactly off the old uptrend support line at 13307. It's possible that the move down from 13662 was a 5 wave move and, if it does drop below 13011 from here then the move up from 12471 will look a lot like 3 waves.

In addition, 12471 was the 38.2% Fib of the move from 10404 to 13662 so a 5 wave move down to there followed by a 3 wave move up ought to be followed by a further 5 wave move down, possibly down to the 61.8% Fib of the 10404 to 13662 move at 11663. US fiscal cliff could make this speculation a reality perhaps?

Time will tell...

should be a free trade now.
Also if it heads towards 13290 again then dont try and short it again.
This only works on first attempt mainly.
dyor

here's an example... dl.dropbox.com/u/40497882/Dow_90_69Fibexample.JPG

WaveSurfer wrote: I tend to use 90% (assessment of lower highs)& 69% potential area to watch for out signs of reversals - all depends if these levels get taken out or not will give me further direction of the trend whether corrective or impulsive and also provides initial area's of previous breakout/breakdown / support/resistance

from the chart you can clearly see both the 90% & 69% of this current move up represent the price range when the move down started 90% and recommenced 69% to make nov 16 lows...

its just something I've noticed and use to observe pivotal area's in conjuction with the conventional fib levels. ......

regards WS

I tend to use 90% (assessment of lower highs)& 69% potential area to watch for out signs of reversals - all depends if these levels get taken out or not will give me further direction of the trend whether corrective or impulsive and also provides initial area's of previous breakout/breakdown / support/resistance

from the chart you can clearly see both the 90% & 69% of this current move up represent the price range when the move down started 90% and recommenced 69% to make nov 16 lows...

its just something I've noticed and use to observe pivotal area's in conjuction with the conventional fib levels. ......

regards WS

Whats with the 69% fib ?

that also happens to be 69% fib level - dl.dropbox.com/u/40497882/dow11DEC.JPG

remo wrote: Im shorting the dow from 13290 on first attempt basis with a 40 point stop.
Theres 2 levels of resistance together there so will find it difficult to push through on first attempt i suspect.
The resistances are from the down trend line 13294 and horizontal resistance 13290.
This is only for today

DYOR