Thursday, August 21, 2008

Just another day in paradise

Well this is how a dead cat bounces - I had indicated we will see a bit stronger off a move yesterday off key support ranges that did indeed occur (though it was not perfectly off the low I wanted). Highs and lows of the day ended up as predicted as well.

We should continue our breakdown from here on out as a continuation of yesterday's rally seems unlikly. As you can see we have a key point at 1262 that needs to be broken to continue on the low side. From a fundamentals perspective, a break here will lead us lower quickly - financials are breaking down, FNM/FRE are at the point of being taken over by the feds - there is more and more. Oil now at 118, dollar weakening again.

Time and Price
1st high 1282
Open/Close 1274
1st low 1262
2nd low 1250-1252

We should see further breakdowns off the morning open with a break of the 1262 today.

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