Dow 8,500 Or 11,500?

The bull market is over a year old now. So, the question becomes "does the market have more room to run?" Or "is the rally doomed to fail?"

Tech Ticker had an interesting guest on today who believes the Dow will see 8,500 before 11,500. Richard Suttmeier, chief market strategist at ValuEngine.com says last Thursday's selloff shows that the "the fundamentals do not support higher stock prices." The fact that the Dow lost almost 10 weeks of gains in eight trading days is telling you that buyers cannot support the market at higher levels.

Suttmeier believes the Dow is fairly valued at 8,500 and that investors should buy on weakness and sell on strength.

Interesting to note for all those fibonacci fans out there, Suttmeier says that the 61.8% retracement of the entire Dow decline from the October 2007 highs to the March 2009 lows is at 11,250.