In recent years the New York Stock Exchange Composite Index made a significant higher high above the 2000 bear market top. Price has been correcting quickly on the monthly chart and is below the 4:1 descending Gann angle. To reach the 1:2 ascending Gann angle (where the bear market ended in 2003) price has a long way to fall. There is no compelling reason price must fall to this angle, but if it does, that would be a buy point.
The weekly chart from 2002 looks to be forming a bear flag and could easily drop to the 1:2 ascending angle near 8000. The 1:1 descending angle provided resistance on the first attempt to break through in early July.
The short term daily chart has about 800 points to move up to the 50% retrace point. If July was the low for a while then shorting is dangerous here. The short point would be a breakdown below the July low.
Charts courtesy of Stockcharts.com
Post Modified: August 14th, 2008 at 12:14 am
Tags: NYSE · Square of RangeNo Comments
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