Stocks Get Pounded Again

Stocks got hit hard again today with the dow falling over 300 points. Above is a weekly chart of the dow jones industrials and the NASDAQ composite. As you can see if you shorted the market when the neckline was broken, you would be doing very well as of today. I did not short stocks, I was actually long and exited with a small loss once I saw the neckline being taken out.

You'll notice that the downside price objective for the above head and shoulders pattern suggests that there is more downside coming for stocks. Will stocks continue to fall? Are stocks oversold and due for a bounce? Nobody knows but I'll tell you one thing, I'm not picking bottoms. It is what it is folks.