Tuesday, October 07, 2008

The Selling Continues In The Stock Market



The stock market got hit again today with another wave of selling as money continues to leave in a big way. The Dow was down over 500 points but it was the NASDAQ that got hit the hardest down over 6%.

If you look at the above weekly chart of the Q's you'll notice that the market is gaining downward momentum over the last few weeks. The NASDAQ is approaching a minor support level from 2004 but it's going to take some work for this market to turn around. As of now I have no position in the stock market but am patiently waiting for a nice rally to short into.

3 comments:

Anonymous said...

SPX getting to the 200MA on the monthly chart... I think 991 or 988 you get a pretty violent reversal... Nas composite is also there (slightly through)... Last time the nas was at this average was 10/31/2002... Check it out and let me know your thoughts... I am also bearish long term but I think we are almost done going down short term... Would not be surprised to see a sell off in the morning followed by one of the most explosive rallies we've seen in a while... That said, we break those levels to the downside and stay there, look out below!!!

Anonymous said...

I see what you are saying but I think we will come down to 950 tomorrow morning then the market will rally back up to close at its midpoint. Thursday will be the explosion to the upside.

farouk said...

I know that we are in a bear market and that this is ordinary but Mr bernkake yesterday gave investors another strong reason to panic. i didnt expect someone in such a sensitive position to say words in such a time

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