Retracement

Technically, 7,470 in the DJIA is the 50% retracement of the entire bull market that began in August 1982. At 7,100, we not only cut in half the October 2007 highs of 14,198.50, but we have given back 50% of the 27 year move from the start of the big bull market of the 1980s to yesterday. In addition to a 50% retracement in the DJIA from the 1982, we have also seen a 50% retracement of the move from 1932 low to the all-time high in 2007. 50% retracement of 41 - 14,164 = 7,103. Yesterday’s close was 7,115.