$SPY, $DIA Sell Off at 61.8% Retracement Level (Charts)

The charts say SPY and DIA (S&P and Dow-30 ETF) are testing the 61.8% retracement level from 2007-2009 peak to trough.  Perhaps the reason why we sold off so hard on Friday (along with the Goldman fraud charge).  Adam Hewison of MarketClub warned about this level a few days ago in a chart video.  If you click on the charts below you can see critical support levels that need to hold and see 61.8% retracement levels, uptrend channels from the March 2009 low and February 2010 low, which was pierced by SPY on Friday.  The Dow held up a little better.  Did you notice that SPY lost 1.59% while DIA only lost 1.24% on Friday?  It's also interesting that SPY and DIA volume are at multi-year lows, matching 2006 and early 2007.  By the way the buyers of XRT, KBE (KBW Bank Index) put protection on Thursday are up big.  Charts are courtesy of FreeStockCharts.com.

Below is the SPY 5-Year Chart with 61.8% retracement level from 2007 peak/2009 trough.  It is testing uptrend channel support from the March 2009 low.


SPY short term chart.  It broke through the uptrend channel from February on strong volume.


DIA is at the 61.8% retracement (dotted lines) on this 4 year Chart.  Look at the rising wedge as well.  Support desperately needs to hold if it loses strength.  It also looks like DIA


Look At DIA from the March low.  The uptrend channel still intact with the 50dma at 106, support 107ish.  Important levels.



From the February 2010 low, DIA pierced the uptrend from the February bottom on strong volume but did not take out the uptrend from late Feb.



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