At yesterday’s lows, the Indoos had exceeded by 27 points a 0.618 retracement of the bull cycle begun last July from 9614. However, it would take a further collapse of nearly 2000 more points to retrace 0.618 of the Mother of All Bear Rallies begun in March 2009. The exact level is 8872, and we should remind ourselves that, hard as the averages have fallen in recent days, it’s possible the worst is still to come. Most immediately, though, the Indoos are stealing up on the 10784 target shown. Its breach would of course be warning of yet more weakness to come. I am not suggesting that you bottom-fish in the Mini-Dow, however, because the equivalent pivot has already been exceeded.
