Dow drops 500+

The Dow Jones Industrial average dropped more than 500 points today, one day after the index staged an impressive late day rally erasing a more that 200-point drop to end the day in the black .

The 512-point plunge makes Thursday Aug. 4, 2011 one of the top 10 worst days in Dow history in terms of total point loss, though not on a percentage basis (Largest daily changes in Dow).

While pundits will be quick to blame the recent debt crisis debate, the Dow recently took out some significant technical support areas (see charts below).

This weekly charts shows the entire trendline which was tested and held twice in 2010. it also shows what could be the next significant support level at the 200-week moving average.

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