[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: [RT] Fwd: Panic Low?



PureBytes Links

Trading Reference Links

i also think  tuesday is a lower low
but close up
Ben
----- Original Message -----
Sent: Friday, January 18, 2008 7:07 PM
Subject: [RT] Fwd: Panic Low?

IMO, the failure to maintain a sustainable rally after Bush's stimulus announcement, and the wish-washy close portend further decline.  Sure, the markets are oversold but as we have seen on numerous times before, deep oversold markets can lead to deeper oversold conditions. There were a few sharp rallies during past few days but all were sold into and fizzled rapidly, particularly today's pre-market rally.  For the BULLs, the Fed meeting is eagerly anticipated but this market may need more than a 50 point rate cut and a $180 billion stimulus package to prevent another 5 to 10% decline.
 
 

FLASH UPDATE:
US Stock Market
by Frank Barbera
January 18, 2008

AddThis Social Bookmarking Widget
We are out of office today, but wanted to put this brief update for those watching the S&P-- Shown below is the S&P 2 Minute chart through 10AM Friday. Note the steeply decelerating downtrend line. In my view, if the S&P can move back above this trendline later on today, which would equate to a move approximately back above 1330, the market will have concluded its panic low and should start a rally back toward 1400. 
On the next page, I show at the top, my Super Hourly RSI, which is an extreme OB/OS Indicator. Over the last two hours, it actually dipped below its lower oversold line. Going back over the last few years, shown in follow on charts, that has been rare to hit the lower line, even in panic declines seen in 2006 and 2007. We are now, where we were when the first Sub Prime low was seen in mid-Feb 2007. Other then that, it has been years since 2001, and 2002 that we have seen these kinds of oversold values.
Today (above)
The August 2007 Panic decline. 
Daily DJIA OB-OS Oscillator at ?180 yesterday, probably near ?210 today, most of the time, you get a healthy bounce off of these readings, even in a Bear Market. Watch 1330 closely, if the S&P can climb back above that level, a rally will probably take hold.
Frank


Be a better friend, newshound, and know-it-all with Yahoo! Mobile. Try it now.


No virus found in this incoming message.
Checked by AVG Free Edition.
Version: 7.5.516 / Virus Database: 269.19.6/1231 - Release Date: 1/18/2008 11:55 AM
__._,_.___

Your email settings: Individual Email|Traditional
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch to Fully Featured
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe

__,_._,___