Today the Dow Jones Idustrial Average closed below the 8,000 mark at 7,997. This is the lowest close since 2003, the bottom of the last recession/bear market. Here is a 3 month chart of the DJIA:
As you can see, on the very right side of the chart, it closed just a hair below 8,000. We have seen lower levels in the DOW in October, but the market rallied and closed much higher on that day (when that happened, many called it the bottom). We have retested that low a few times since then and every time the market rallied near the 8,000 mark. Today we closed below 8,000, marking the lowest close this year and dangerously close to the intra-day lows. If you look at these same levels in the S&P, we have already closed below the October intra-day lows, which isn’t good.
I don’t really like to make predictions, but it seems like this market could go much much lower if these lows are broken through and we close a good amount below the 2003 lows. Whatever happens, the next few days will probably be very volitile (whether we bounce up, or break through the lows).
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