Charts Working Perfectly
I wanted to put this out today
because of what I am seeing. As you know, I have been very negative
on this market for some time. The charts have been working
perfectly. No, I am not talking about the daily whipsawing. I am talking
about the major trend.
Recently I told you to keep a close watch out for
important support levels. Let me
reiterate them.
DOW 8290 minor support and more important support at 8220.
S&P 500 at 875.
NASDAQ minor support at 1270 and more important support at
1250.
Let me be blunt.
As you know, I try not to predict…I try to interpret.
It is my interpretation that odds
favor support will be broken and “waterfall” type action could occur
down to the July 24 lows. We would then
reevaluate from there.
I have believed for sometime that a retest of the
lows was in the cards. It is now
playing out according to form. The good news is if this happens, it
will give the market a chance to put in a
“double bottom” which is the way bear
market legs end…not with one big drop. This would also fit in well
with the fact that bear market legs, many
times in the past, have ended in October.
But that’s jumping the gun. First…let’s see if support breaks and
deal with it when it we get there.