WEALTH UNIVERSITY

[clarity789]

-e- Study the DOW and make a decision. (Chart below)

The subject is a Death Cross. A DC occurs when MA50 crosses below MA200 - signaling a severe downtrend is about to occur.

Historically, any stock that suffers a DC will retrace 50%... sometimes less, but usually more.

Look at the DOW chart. The Death Cross occured on Dec 26th 2007 with the nearest High at 13,563 - which is the traditional pivot used to plot fibonacci points.

But when the DC occured, I chose instead to use the High that occured on Oct 11th - 14,198. My reason for doing so is because that was the REAL fibonacci high pivot for that current ewave.

So here are your choices...

1) Do we retace 50% of 13,563? that would be 6,786

2) Do we retace 50% of 14,198? that would be 7,099

Its a 300 point spread....