My case for the Dow retesting 13700

Many financial stocks, which have bore the brunt of the recent sell-off on US sub-prime liquidity worries, have corrected to at least the February lows, if not lower to just above to June 2006 nadirs.

Venerated investment banking names like Goldman Sachs(GS):


















Merrill Lynch(MER):

















and banking giants like Dow component Citigroup(C):
















In fact, what I find most interesting is that Citigroup's share price seems to be tracing a downtrend channel of sorts, and the recent lows(and especially the price rebounding way of their lows within the aforesaid trendline channel) seem to suggest, technically speaking, that the price will re-explore the upper trendline in the inevitable rebound.
















But most curiously,Dow stalwart AIG,one of the world's leading insurers, shows the most astonishing hammer candlestick pattern, that saw prices plunge to a round number low of 60, only to rebound and end way off that magical number:



















Lastly, many Singapore stocks show signs of selling exhaustion, with the twin black candles of yesterday and the day before actually constituting a buy signal.


An example is SPH:



All images courtesy of Bloomberg