The Dow Jones Industrial Average suffered through another tough day on Thursday settling at 7,465.95, its lowest close since Oct. 9, 2002. That month the Dow made its low for the three-year bear market that began in 2000 and has now nearly retraced the entire upward move from Oct. 2002.
Throughout the current market turmoil every analyst has been asking: is this the bottom? Most respond that it is or close enough that investors should reenter the market. But that is the nature of equity brokers who pass themselves off as market gurus.
But with near 1,000 point daily swings a common occurrence in the Dow Jones Industrial Average and the Dow closing today below 8,000 for the first time since March 31, 2003, it may be a good time to take a little more scientific approach.
John Di Tomasso, a valued based commodity trading advisor (CTA) attempted to do just that in a letter he sent out to investors and friends of his program.
Both the Dow Jones Industrial Average and S&P 500 dropped significantly on Friday settling below the multi-year low close from Oct. 10. The low close in the Dow, 8,378.95, goes back to April 2003 and the close in the S&P,866, goes back to March of 2003. Despite intraday losses each of the last two days, both indexes managed to stage strong end-of day rallies to settle above the Oct. 10 low close.
