Dow Monthly Chart

Dow closed up nearly 400 points. That is amid news of further $19 billion
write-down at UBS and plans at Lehman to raise $4 billion of capital.

The financial stocks did pretty well. Citigroup Inc. shot up 11 percent,
JPMorgan Chase & Co. rose 9 percent, and Lehman surged 18 percent.

Let's look at the long term chart for the Dow Industrial.

The monthly chart shows that the Dow is now very close to the lower end of
the upward channel. It touched the lower trend line on Jan and Mar 2008 and
managed to rebound from there. 11,700 to 11,500 level is now a strong
support line for the Dow.

Looking at the Fibonacci retracement level, Dow is rebounding from to 61.8%
level. If this rebound holds, it will have to clear 14,280 which is the
high attained on Oct 2007. This will give us a target of 16,270.