DOW wont break 7500 support

[wjk]

Quote from TradingPilot:

I Don't think the Dow is going to have enough steam to break through the heavy support area around 7500.

What do you guys think?

Perhaps Friday's action was a test of that area, give or take a few hundred points. I think a bear rally may be unfolding, but who knows? I picked up a few Q's at 30 for a swing, just in case.

If the underlying issues in the world economy are not resolved, DOW 7500 will eventually be taken out. In either case, I would think a retest will be in order a few weeks to months down the road.

 

[hopeful]

The two crashes I was referring two are the 1969 crash and the 1973/4 crash. In the latter the low was retested 9 weeks later. The 1987 crash was a bit different because it dropped 20% in one session, so I'm not looking at that as a comparison.