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Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (65032)	8/5/2002 9:09:07 PM
From: DebtBomb	Read Replies (1) \| Respond to of 208838

The 50% retrace back down, all got busted today. NDX, SOX, new lows, so they're not retesting. Nasdaq new closing low. An important technical tool is the 50% retracement rule. If any move exceeds and stays above/below the 50% retracement of the preceding move, the recent move is deemed violated. For instance, the DJIA rally from 7535 to 8739 has an 8137 midpoint. If the DJIA falls below and stays below 8137, resumption of the decline is expected. If the level holds, a rally is expected. Nasdaq?s midpoint of 1274 from the recent rally has been breeched (1248). The S&P level is 844. On a larger scale, Richard Russell notes the S&P 500 midpoint for the entire 1982-2000 rally is 815; it?s 6244 for the DJIA. The 50% rule is best used with major moves. ?The larger and longer?the more validate the 50% principal?. PS- Some traders use .618. investorshub.com