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This is definately an academic question, not a practical one, but hey
this is new territory for all of us...
So, what _is_ the affect of circuit breakers on the various TA
indicators?
Since trading was suspended for ~1 hour total today, should
adjustments be made to volume accumulations, new highs/lows, etc.
Similiarly, what did all of the real-time people do with their charts
today when trading was halted for 30 minutes? Must have screwed up
any stochastics, MAs, etc. to have a 30 minute flat line in the chart...
Personally, I expect that the market will gap much lower tomorrow
because it was not allowed to complete its move today. The market's
reaction to the first trading halt was definately not positive (down
200pts in 25 minutes). With no sign of a bottom yet it may easily
shoot through the weak 7000 support level and (hopefully) start
bouncing around 6500, but the circuit breakers may affect the timing
of that bounce.
I'm in cash now and waiting for things like market imbalances to hit
before I start bottom fishing. At that point, I'll use FA to pick
good, long-term companies because the last few days have screwed up
all my indicators royally and I don't trust them in this environment.
Back testing against the '87 crash is no good because the circuit
breakers weren't in place then.
Good luck all,
Chip
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