Looking for rally from here. Reasons 1) Trend line from 1994 showing perfect support at close at the level of 9950 area. Catches trend from '94 through '02/'03 and now. 2) VIX level 55+ unwarranted and higher than '98 through '02 3) Fed will probably come out and calm markets with rate cut (yes I know they haven't worked in the past; but will be good for short term rally) 4) Jim Cramer threw in the towel and is telling his viewers to SELL! If that is not a good buy signal, I don't know what is!!! REMEMBER this call is for 1-3 months that we won't revisit or break through 9000 in DJIA. Long term who knows?
Here's that chart on log scale for everyone. Personally, I think TA is out the door on the Dow until the Fed Figures out what they are going to spend the 700 bil on exactly... hopefully not bubble gum.