Thursday, November 20, 2008

Technical Picture - Technical Bounce Needed

A retest of former support, followed by a high volume sell-off. If we keep it up at this pace, the S&P will all but disappear by Christmas.

The S&P needs to close the week above the blue line (2002 lows). We desperately need a technical bounce because we've completed a double top formation. The fib. extension of the double top is not pretty and it definitely looks like a depression as opposed to a recession. So hopefully when the DOW tests its 2002 lows (7197) and it looks like it will tomorrow, we'll get the mother of all bear market bounces.

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