After the significant stock market sell-off today (6/26/08), a lot of investors are worried about how low the market will actually go. To ease your fears, and perhaps add a little technical guidance to your investing, I have charted the nearest support/resistance levels for the Dow Jones Industrial Average.

The Dow Jones fell through the 12,000 support level on June 20th, when it closed at 11,842. When a chart pattern falls through support it will typically continue lower - which it did. The Dow is now testing the support level at the 11,500 range. If the 11,500 support level does not hold up, the next level of support is the 11,000 range.

With that being said, it is probably a good time to understand technical analysis a little better. I have added a page on my website discussing this topic and I suggest you start there. Technical analysis is a very important investing strategy when it comes to determining entry and exit points. Not only do retail investors use technical analysis, but so do fund managers. Therefore, a lot of money will move in and out according to technical indicators. Support and resistance levels are the most common and the most basic of technical analysis.

The Dow Jones is a good overall market indicator, which means if the overall markets are headed a certain way, most likely your individual stock will also.

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