The number of dip buyers is still very high, they are a tenacious bunch. Reversal days like last Thursday and yesterday are crack like in addictiveness and the longs lucky enough to buy the dip come back for more, wanting more of the same, quick reversals off mid day weakness. The market is not that obliging. There is no such thing as a quadruple bottom. We're going to bust through the bottom of this trading range, and find a range where there is a balance of buyers and sellers. Right now, the sellers are more eager than the buyers, untill the price goes even lower, that will remain the case. A range from 650 to 800 could be the new range, where the bulls can maintain a rally for more than a few days and permanent value buyers come in en mass. The most common excuse is hedge fund redemptions. Now we have a new excuse with the auto bailout uncertainty. Let's face the facts. The stock market sucks. Stocks are not cheap. They are cheaper than before, but not cheap. It was a big Ponzi scheme for the past 10 years and it will take years to unravel.
All the big guys are playing with the Futures that is why they move like 400 to 500 points up or down You can see there is literally no buying come in eeven when the dow is up like 100 point stock are still very negative
I know a lot of people are watching the S & P, but check the SOX. Testing a low from oct 98. If it fails, see ya later NASD...
The nasdaq is not moving anywhere anytime soon, do you know how many years it will take to get to 5000 again, it probably wont see that level for at least 20-25 years.
I was thinking another 10% or so to 1253. Certainly not a disaster, but another decent leg down. Edit: I was indicating if the sox level fails, NASD goes lower, just to clarify
Thanks for the long signal. 1121 NQ. Let's see where it ends today. If this level holds we're going to 1194. If it doesn't we're going to hell