DOW Levels

The DOW gave us a bit of a scare over the long weekend, but the FED stepped in to TEMPORALLY put a freeze on the free fall. The daily chart looks very convincing that we've put in the start of a bottom as it bounced off of a May 2006 resistance level and closed at a March 07 support level, BUT that was just today. I would like to see a bottom just like every one else, but the evidence is not all there yet. We are still in a downtrend, and until we can put in a series of positive consecutive days I will continue to respect the downtrend. Always remember that the market has no rules and can go down as far as it wants...even below current support levels. Also remember that any rally that creates a lower high will likely prompt another heavy sell off that may even create lower lows -- Be on your toes.

DOW Daily Chart: