Watch closely: Big numbers for the Dow Jones

The US index ended on a low last week, so our chartist looks for signs of bounce-back potential. 

Wall Street, the DOW (DOWi:DJI) 

To escape from overthinking immediate events, we've taken a look at Wall Street and shall comment against it, daily, for the coming week.

The big picture number on the Dow Jones index is at 18,000 points. Essentially, movement below such a level allows for panic, thanks to reversal to 14,000 being pretty likely.

Unfortunately, recent moves on the index already risk troubling this level.

Now, below 21,450 allows weakness toward an initial 20,392 points. If broken, secondary calculates at 19,643 points.

At this level, we need to take a deep breath and steady our hands as we compute the third level, should 19,643 break.

It's down at 17,190 points, obviously breaking the 18,000 trigger and risking really severe reversals.

However, there is something worthy of consideration and it's shown on the chart inset.

The Dow broke the uptrend since 2009 and, somehow, despite world (and New York) events, has recovered above this important trend.

Due to this, allegedly it's now the case of movement above 22,330 allowing a journey to 23,207 to commence.

If exceeded, secondary calculates at 24,415 points.

We're pretty far from convinced unless some bloke, working in his garden shed in Sheffield, has a big surprise cure to announce.

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea.