Tuesday, October 07, 2008

NASDAQ Technical Picture - Fresh Multi-Year Lows

The markets started on a slight bullish note following the Federal Reserve's announcement that they were creating a Commercial Paper Funding Facility to provide a liquidity backstop due to the strain in the commercial paper market. However, the extension stalled out in the opening range with a choppy pullback persisting through midday trade. After lunch, things started to unravel with a steady stair-step decline persisting into the close. The markets closed down for the 5th straight session to establish fresh multi-year lows.

Futures took out today's lows following announcements from the UK of more bank bailouts.

Check out the McClellan oscillator, this oversold level (-100). is unprecedented in the last 10 years.


Anonymous said...

Hey Jamie,

Unprecedented indeed. This market amazes me again and again.

TJ said...

Hey Jim,

Amazing indeed. I'm looking forward to a bounce, the selling is starting to feel cautious.