“As you can see the Dow has spent a good number of years inside of this rising channel. It broke above the channel in the late 1990’s and become support at the 2002-2003 lows. In the 2007-2008 time frame, once support broke, the Dow fell hard for a few months. Now the Dow is testing 70-year channel support this morning. Carl Icahn has expressed concerns that the stock market could fall a large percentage. Support is support until broken and the Dow right now it hitting one heck of a support line. Should this support fail to hold, the little boys comments above, say it all,” notes Chris Kimble of Kimble Charting Solutions.
Dow Jones Industrial Average
Chart Courtesy: Kimble Charting Solutions