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Is it time to rein-in expectations regarding the Dow?

Indeed it is, if technical analysis and historical p/e ratios mean anything.

Those with visions of a Dow of 11,000 dancing inside their heads need to take a step back, for context and perspective, on the likelihood of a Dow push to that level in the near future.

The U.S. economy is in recession, it's shedding jobs, downward corporate earnings revisions are likely, and the world's major economic regions are attempting to re-liquefy credit markets and prevent a global financial crisis from further damaging economies, worldwide.

The above, as CNN Talk Show Host Larry King would say, 'ain't exactly signs of prosperity.'

And the Dow has responded: down more than 30% since hitting its all-time high above 14,000 a year ago.

Keep your eye on 8,500 / 8,200 / 8,000

Earlier in this space yours truly noted that the Dow had technical support at the 8,500 to 8,200 levels, and of course psychological support at 8,000.

Continue reading Reiterating modest expectations: Think holding Dow 8,000

Reiterating modest expectations: Think holding Dow 8,000 originally appeared on BloggingStocks on Wed, 15 Oct 2008 15:40:00 EST. Please see our terms for use of feeds.

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