The DOW had what appeared to be a short term reversal today based on, for now, firm technicals. The DOW traded under the 8000 level by a hair and then immediately went north. On two earlier slides into this area the end result on both ocassions was the same as today, followed by a good percentage push. Based on the other two pushes out of the high 7000's, this little reversal today could concievably foster a 10% move for an unknown period of days.

Just below the 8000 level is the slowly ascending 1000 day moving average line at or just under 7900. It's difficult to see where the line is exactly so we'll just call it an approximate round number of 7900. Until this important long term average decisively yields to selling pressure, it will be offering a continuing strong technical undertone to the already supportive area of 8000.

IMO, that's what supported the reversal today from a purely technical perspective.