DJIA 2/23/09 LAST LINE OF DEFENSE 2002 LOW

The Dow pushes past the important Nov 2008 low of 7450 this week with all the big moves happening after each of Pres. Obama's recent televised appearances and that of Treasury Secretary Geitner's. In my 2/17/09 post, I said that if the Dow breaks 7500 it is likely that the average could hit 6800. If that price objective is attained, then the index would have likewise breached the 2002 low of 7000. Looking at the 15 yr chart, the absence of significant support levels prior to 2002 implies that we will have no historical basis to estimate where the next buying interest may appear if the index tanks lower than 6800 and we will then have to resort to other methods of identifying potential levels of support. The MACD suggests that the velocity of the decline could potentially make 6800 achievable.