Dramatic Disaster (2010-05-09 DJI analysis)

I think almost everyone was somehow amazed or scared by such a dramatic change in US stock markets. While some believe that there were human errors, I along with others thought it was a skill used by the rich guys. Nevertheless, myself as a student, this is a very great chance for me to learn different "strange" situations and what would happen next. This would be a great lesson to let me prepare for my future career.

Back to technical, not knowing whether it is by chance or not, the dramatic change just hit the 161.8%-line of the fibonacci projection, and of course it went back to what it "should" be. Last of DJI was 10379.60, sorry the chart was not updated due to the unstable reuters system at my school (at the time I did analysis, it was at around three hours after the opening of DJI). It was clearly that the fibs line confidently supported DJI.



It is still unclear that whether DJI would break this line or not, but in my opinion, market would rebound a bit because of the just-passed plan for saving Greece, but thanks to crisis in other parts of PIIGS, the bears would be more likely to keep on killing bulls.