Dow under pressure

Thursday’s sell off in the Dow Jones Industrial Average took out the 38.2% Fibonacci retracement level of the rally from  the 2002 low to the all time high in 2007 based on the monthly close. Monday is the last day of June, and if the cash Dow can’t manage to close above that level it could indicate further damage. The 50% retracement level would roughly correspond with the July 2006 lows.

The 38.2% Fibonacci level for the S&P 500 based on monthly closes is approximately 1271.