![](https://1.bp.blogspot.com/_OYyjHbNao7k/SZ4avVkjWwI/AAAAAAAAAQY/6SphCnkKkKM/s400/dow3.jpg)
Taking a look at the S/P and Dow, we are at, and coming into a major support level. The
Dow, closing at the lowest level since 1997, has the potential to break down into “open space” meaning the next support level is not clear.
![](https://4.bp.blogspot.com/_OYyjHbNao7k/SZ4ax5S4eZI/AAAAAAAAAQg/P5VXfQzpvZA/s400/spx2.jpg)
The S/P is not far behind, just off it’s November 08 lows which coincide with the lows of 2002/03. If we see a break of the
S/P 740 or the
Dow 7450 we could be in for some serious panic selling. Be prepared for extreme volatility, and as we stated before, a potential
surprise rally which could come at any time.
The largest bull moves happen in the context of a bear market.