look at a monthly of the dow - lots of support at 10,000... i aint gonna buy it myself...shit is just too crazy but jes sayin
Yes and we are near support for the S+P. I could see maybe a bounce but have you looked at the VIX, is that a bullish pattern or what?
Futures are pointing lower tonight (ES 1088.75). Possibly a gap down reversal tomorrow preceded by a sharp spike in the vix, signaling a short term bottom. Covered my shorts on thursday, looking to go long very short term on Monday, if the scenario above plays out.
The day before short selling was outlawed, I saw a panic reading at the highest levels ever recorded. The fact that there is so much leverage out there makes it more like the ledge of a cliff at this point. We are seeing off the chart panic readings, but the Equities indices have yet to reflect that. There has been a major propping up here. I think we need to see some capitulation signs in the indices before we can call a bottom. I'll bet if dow hits 9700, and $spx tests 1000, we will see real barfing capitulation.
The bid has simply disappeared from this market as the guys on the sidelines are awaiting a new psychologically important price level like Dow 10000 and SnP 1150 before they commit capital and throw in an intraday rate cut and we can bounce 15% over the next few weeks. In 2001 we bounced 17% before we rolled over again so I think any bounce will be under 20% as that would be a new bull market and that ain't happening until RE or unemployment starts to bottom.
A very wise Bird, one in a cage told me something very interesting. Rally into the election with an OBAMA victory. Of course the Bird and I made a wager on OBAMA. However, the market is, well, manipulated and It would not surprise me to see a mother of all Rallies into the Nov Elections. Of course, my gut is telling me that we are going into a long deep and very painful recession for most people. Who knows. My pass port is ready if OBAMA wins. COSTA RICA here I come!.