This is certainly the season for the bears. They were able to break the 2008 lows on the S&P 500, Nasdaq and Russell 2000. The Dow has somehow managed to hold above its October intraday low and I'm sure everybody will be watching that level in the coming days. That Dow low holding seems to be the last hope for the bulls in the short term -- and that would be nothing but hope.
The volume hasn't been that bad but it seems that the market is just falling under its own weight. Not only is the economic & earnings news flow bad but we've also got these sickening congressional hearings on TV all day long. There's really little reason for buyers to be motivated right now -- they're not even getting what's typically considered capitulation selling.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I'm simply using the indices' relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
I don't see how you come up with a low of 6K on the Dow. This market reminds me of the bear market of the '70s. I see support coming in at the lows put in at the 2002/2003 levels.
Like I said, it's a simple measured move. The Dow rallied some 1700 points off of its October low. Take that 1700 and subtract it from the October low and you get about 6,140.
I'm not saying that *will* happen, just that the potential is easily there based off of such a measured move.
Michael,
Always enjoy your informative and straight forward posts. Thanks !