Dow falls on target

Technically we had 14052 as a Fibonacci Price resistance and October 8^th as a Fibonacci Time zone. This scenario has played out and we appear to be in a correction to the downside.

The question now remains as to how large a correction will this be?

The minimum initial price target is 13532 and below this we have 13434 and 13327. If the Dow falls below the Wave 2 low of 13021 then serious conditions are at hand.

With regards to time aspects a low significant low can be expected around November 2^nd – 9^th.

Depending on the pattern structure we will need to keep a close eye on how this develops as this will provide the key to the next major move. If the Wave 2 low is taken out in an impulsive manner then for all intents and purposes, this will be a major correction and a low will then take place around December 27^th or February 13^th 2008.

For the present moment, any surprises will be to the downside and the credit crisis and rising oil prices will have longer term implications so we can expect the news to be focused on this as a blame factor. Focusing on the technical conditions should provide us with measurable targets and help us as traders to be on the right side of the market.