AORD lost 46% since its all time high(6873 Nov 07) i.e. worst than 1987 fall. However, along with anticipated global stock market recovery (see world index analysis), we are heading for a corrective rally based on following "Technical" observations. See the inlaid "Quarterly" chart. The index has been supported "exactly" on the trendline drawn from 1991 low of 1275.
Considering the magnitude of the fall (46% in just 12 months), & the earlier excellent supports (Dec92, Mar03) provided by this long standing trendline of 17 years, expectations of the "rally" are justified. But is it complete "reversal" of the trend? Lets see how the trend evolves in the next few weeks/months.
On the extreme near term (daily) charts, the recent fall (from 4291) has given fib 0.618% retracement of the entire rally (3693-4291), now expect 3921 as a good support for the bulls in the near term (near Stop). On the upside, once taken 4.3k expect a steady build up towards 4.4-4.5k in the next few weeks, or by the year end.
