ALERT: Dow Likely to Drop to 10,600: Charts

Info is being analyzed and the Dow might loose 700 points tomorrow.

www.cnbc.com...

The rough ride for equities may not be over, according to the charts. After losing 500 points on Thursday, the Dow could drop another 700 point before finding some support, Darryl Guppy, CEO of Guppytraders.com told CNBC on Friday morning.

U.S. stocks lost more than 4% in Thursday's session.

"With the head and shoulder pattern in the Dow, it's giving us a downside target projection of around 10,600," Guppy said, after Wall Street suffered its worst sell-off since early 2009.

Guppy believes the 3 major U.S. indices - Dow [.DJI 11383.68 -512.76 (-4.31%) ], S&P 500 [.SPX 1200.07 -60.27 (-4.78%) ] and Nasdaq [.IXIC 2556.39 -136.68 (-5.08%) ]are likely to hit their downside targets.

"The key factor is we are now beyond the crossroads," he warned, "For instance the S&P, we've moved below the neckline value and we've moved below the neckline value in the Nasdaq."

He thinks the Nasdaq could hit 2300, a 250 point move down from Thursday's close; and the S&P 500 could hit 1140.

The Dow and the S&P 500 shed over 4 percent on Thursday. The S&P is now in correction territory, having lost more than 10 percent since its April 29 high.

The selling continued well into Asia, with the Nikkei falling as much as 4 percent in early Asia trade.

For investors looking to buy on the dips, Guppy said there may be some "bear reliefs" on the way down but investors should wait it out.

"This is not a good time to go buying bargains, bargains will be coming in a few weeks time."

Do you have any comment that we can add to with this post or do you just copy and paste headlines?

This is a discussion board

reply to post by kro32



Well as they claim it would drop just 700 i think thats just to low of a number. What i really see is a drop in the range of 950 to 981 points which will suddenly cause it to drop even more before the closing bell.


Then that's only if the job numbers are so so but if they are bad........the SWHTF.

reply to post by kro32


he did say

Info is being analyzed and the Dow might loose 700 points tomorrow.

But anyways... very interesting news, goes along well with everything else going on in the financial markets...

That guys name is Guppy! hahah that cracked me up... Guppy says, Guppy believes... hahahah

Originally posted by dreamfox1
Info is being analyzed and the Dow might loose 700 points tomorrow.

According to the charts... lol. Markets never HAVE to do anything. Something technical traders never figure out

Friday's Dow close ... +100 to -200 ... in there somewhere.

You heard it here

reply to post by dreamfox1


Much better Now for those of us, like me, who are not knowledgable about economics can you tell us if this is something normal people should be concerned about?

Originally posted by kro32
reply to post by dreamfox1

 

Much better

Now for those of us, like me, who are not knowledgable about economics can you tell us if this is something normal people should be concerned about?

Well not for the moment only if it crashes completely then yes it will affect all

reply to post by dreamfox1


Well keep the updates coming then.

Good post

Try down a hundred per cent by close of business,and a big red sign that say BUSINESS CLOSED !!!!!

www.livecharts.co.uk...

People may not put much store in charts but for anyone who does this one showing the last 500 days could be understood even by an amateur !

darn linky stinky !

I'll keep trying....




Nope.... however , it showed that a support level around the 11,854 level had been penetrated and the next indicative level looks to be 10,850 for a test of that support.

reply to post by kro32


99% of everything on this board is cut and paste from headlines around the world!

reply to post by bluemirage5


99%? so your statement is very likely to be a copy+paste too ? )

In regards to the markets, the European ones are not that bad today.Still concerned for Monday to be honest!

Well. Whenever everyone on ATS starts screaming for the collapse it is time for a rally.

Yes, there are no technical support levels for a while. Still, the QE3 rumors are gaining steam.

The markets are oversold, and looking for any good news to spark a rally.

I kind of a expect a quiet session where the market digests the move. Up or down 1%.

Gold is already moving up strong. That could be an indication the fall will continue, or that those buyers that are out there are moving all those liquidated dollars somewhere safer.
[atsimg]http://files.abovetopsecret.com/images/member/0df5aa54a312.gif[/atsimg]

Silver is the one to watch. If fear does not take over the equities there could be a nice rally in silver.