Thats a small one compared to the one in early July, I think it was around July 13th when INTC came out with some good news.
The amazing things about lines on a chart is that if the axis is moved up or down just a little bit, then the chart has a different appearance. The importance of not having a bias or emotions in trading is so you can be objective. When I visit most blogs, I can see where the trend lines were moved a little bit and some fudging occurred. It doesnt take much to tilt the lines so that the picture favors how you feel. This is because many of the traders really "hope" the market will correct so they can get in at much lower prices. They are "greedy" and want to be able to pick up stocks at much lower prices and ride them up on leverage making a killing. "Hope" and "greed" are the worst enemies of a trader though. "Hoping" the indexes will turn back because you are "greedy" will be a downfall. The truth is that some of these stocks do have the potential to dump down to their March lows, but there is a greater chance they will see much higher pricing in the times to come. AMR and GE might easily be a double from here in a years time or less I guess time will tell In this picture, I traced the two datapoints exactly. In this picture, it looks like price is try to escape out of the wedge and even backtested it recently. The most important chart is oftentimes the one you dont look at. Usually the ted will base and spike up before any big correction. In fact, look at the time right before 1987 and Sept 2008. The above chart I got off the internet because I dont know where to get it otherwise that extends that far out with the data. Here is the most current spread and there is no indication in this chart that the market will get back down to its March lows. My opinion is that in a year's time some folks might be smacking themselves wondering why they were so bearish in 2009. No need to worry though. Every year that I have been alive, there are always stocks doubling and tripling in months. The trick is just to find them.
It certainly does extend further then the LIBOR data. If it didnt, I think I would be out chasing some girls, listening to an ipod and having fun. As it is, Im here with you guys pondering the direction of a bunch of red and white candle-like objects on an artificial screen. Its sad I know...