DJIA Is At the Edge of a Cliff

As of the January 18, 2008 close at 12,099.30, The Dow Jones industrial average is down 14.58 percent from its all-time closing high of 14,078.69 set on October 10, 2007. And more downside is likely.

The DJIA is at the top of a support zone between 13,000 and 10,000 (pink are on chart). An orderly, but persistent, downside could take the average to 10,000, a 28.97 percent correction from its all-time high.

What may seem like bargain investments today, could get a lot cheaper. Be very careful with this uncertain market.

Related Articles:

Bubbles Galore - Hang On to Your Pocketbook
Get Set for a Rocky Stock Market in 2008
Price Patterns - Support Levels May Constrain Price Downsides
Ugly Downsides - Avoid the Price Downside

Posted January 18, 2008.