Thursday, October 9, 2008

First signs of a bottom ...

Yesterday
Yet another gap open in the morning however this time it was accompanied with a global interest rate cut by pretty much all major banks. Here I thought is were we would take off but this rally did not even last one hour before it sold off again, very clear sign of the confidence for traders being non existant. I would have expected further sell offs but surprisingly, the first time in over 2 weeks, we showed signs of support - we tested the 1020 range three times before finally selling off, however this is the first time having consequitive tests on an the upside. Additionally several stocks have shown prices to find support. AAPL is a great example as the 87-88 range indicates a bottom there. I am not convinced yet of the upside but we should see more companies finding a bottom here.

Today
We have to make sure we keep ourselves on the upside, that does not mean close in the greens but staying above the key range of 990, even if we have a narrow range today or trading sideways I would consider this a victory at this point.

Time and Price
I am hoping that sense is coming slowly into the market. Two numbers to watch today.

1020-1021
990

Of course a break of the 990 will lead is to the 955 I indicated yesterday.

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