Since the election, all major indexes have turned sharply downward on the back of unresolved "fiscal cliff" issues. The S&P 500 and the Dow Jones Industrial Average are now approaching areas of significant support, leaving many investors on edge.
The S&P 500 is trading near support around 1,300. It was a fall through this support level that ignited the further crash in October, 2008. Since that crash, the S&P 500 managed to climb back to this significant 1,300 level in 2011 and was finally able to rise fully above this level throughout 2012, using it as support in May. Currently, as mentioned, the average is facing this support level once again, as it did in 2008.
Similar to the S&P 500, the DJIA fell through support around the 12,000 to 12,500 level in 2008, climbed back up to this level in 2011, broke above it throughout 2012, using it as support in May, and is now facing another fall through this significant level...
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