The Dow Industrials broke down as long ago as Feb. 20, and it looked like any breakdowns might be confined to just those few stocks. But with Friday's new closing low on the S&P 500 and yesterday's massive sell-off with very wide breadth, it is clear that the near-term trend clearly supports lower prices.But how low?
Support zones just don't give a clear answer to that, since we must go back to 1996 before any support shows. Mid-year to mid-fall 1996 show a support zone for the Dow Industrials at 5,300 to 5,800 and the S&P 500 at 625 to 680. That is more than 12 years back and, since time takes away from accuracy, we will go to another source for our "guesstimate."
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