Dow May Hit 4,000

Louise Yamada is widely regarded as one of the top technical analysts in the business. She was a Managing Director and Head of Technical Research for Smith Barney and was the top-ranked market technician in 2001, 2002, 2003 and 2004.

In November, Louise stressed the importance of the Dow Jones holding the 2002 lows and warned of much deeper selling should those levels be violated. Both the Dow and S&P 500 have since taken out the old 2002 low and Louise was on CNBC today. “Now that the 2002 lows have given way we have further to go,” she says. “The first targets are 6,000 in the Dow and 600 in the S&P and the second target, I hate to say it, could be 4,000 and 400.”