djia M

1.618 Fib extension from 1st drive (09-10) comes in ~17200, basically nailing recent top. A trendline connecting the high from 2001-2007 coincides with major support on the weekly 50sma ~16200. It will take time, but if this support breaks, I think we will eventually pull back to around the highs of 2007. This will be a brilliant plan by the Fed if the theory of escape velocity holds. The only issue is whether the REAL economy can endure higher rates once this pullback occurs