netedge
Registered: Feb 2005
Posts: 83 |
10-28-08 09:17 PM
Ok, so this afternoon we finally resolved the test of the bottom of October 10th. And we all know how it was resolved. It HELD FIRMLY after a wild ride today. The shorts started covering and the longs began to feel more comfortable and began entering.
Volume on today's rally was impressive. Markets up almost 9%. Two of my 3 bottoming conditions have been met - when the market rallies on bad news this is the 1st part of the signal (see below). The other is a VIX steadying under 50. And the last is a retest and hold above the October 10th low (mission accomplished).
Here's evidence of part 1 in the news today:
Stocks see moderate rebound after sharp selloff
Tuesday October 28, 12:33 pm ET
By Tim Paradis, AP Business Writer
Stocks rebound but come off highs as weak consumer confidence reading stirs spending worries
NEW YORK (AP) -- Wall Street took a dose of bad economic news with relative calm Tuesday, rallying even as consumer confidence plunged to its lowest levels in 41 years. The Dow Jones industrial average rose 150 points, leading the major indexes with a gain of more than 1 percent.
The market did pull off its highs after the Conference Board said its index of consumer confidence has fallen to 38 in October, well below the 51 analysts expected. Wall Street is worried that consumers, whose spending drives more than two-thirds of economic growth, will keep pulling back, particularly as the holiday shopping season approaches -- but with a litany of bad economic news this month, many investors expected the index to sag.
Are you feeling better now 
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