The Best Laid Plans…
When I put my P.S. into the end of my last
report, I certainly didn’t know it was going to be trash time again. Looking
back, there were clues. First off, many 1999/2000 leaders started breaking down.
These are the names I have been telling you were good-looking shorts. Secondly,
breakouts started to fail. Third, Wednesday’s close on the lows for the NASDAQ looked very
suspicious. It just started to feel like the upside was gone. I thought that maybe support could continue to hold…but the best laid plans…
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That takes us to today. It is a simple equation. Price movement, volume,
breakdowns…everything you don’t want has occurred. If the markets cannot pull up their bootstraps and reverse
quickly, start playing TAPS.
The NASDAQ 100 breaks below 1800.
The NASDAQ is now below the 50 DMA.
The DOW breaks below 10,800 support.
The S&P is now below 50 DMA and breaks support at 1240-1250.
The TRANSPORTS and UTILITIES showing long tops.
These charts speak for themselves. I have never been one to fight the major
averages. While there have been subtle clues, it remains amazing how much damage can be done and in such short order. Â