10/9 - Market Analysis

News
- GM falls to 58 year low on possible S&P downgrade of its credit to junk status
- ibm preannounced earnings which beat and gave tech a boost in early trading
- 7th consecutive decline in the broad market...
- Dow falls well below 9000 to 8579

Afterhours
- C says it has ended talks to buy WB...

Personal Note
- as daily charts lose perspective due to the 90" drop in the markets, i have resorted to using monthly charts to show trends and possible support areas...a change like this might mark capitulation...lets just hope so...

SPX daily
- volume slightly lower than yesterday (but is a jewish holiday)
- big volume at the end of day selloff at the close.
- first day since the short ban did it feel like panic selling


SPX month
- support is not very near
- as we broke major support today, the next one is a bit away...about 100 pts away


NDX
- very close support but not quite yet


DJIA
- at a decent level of support


IWM
- closed very close to the target from the H+S breakdown
- at a very strong level of support


MDY
- at a very strong level of support
- very similar to IWM


$Tran
- broke a good level of support
- now sitting on an even strong level of support
- close right on the targeted move from the 2x top

UUP daily
- possible bull flag being made
- pushes above resistance on very light volume


USD
- at a strong level of resistance not seen on daily chart
- near level where MA and trendline intersect


USO
- broke strong support earlier
- now sitting on another good level of support


Analysis: from the daily chart, we are doomed...technically, nothing can save us...weekly it looks almost the same way. It is only when we look very far back at the monthly charts can we find any optimistic news...to my surprise though, every chart is at some level of good support or resistance...some are right on it and many others are within a one day move of it. as these are very very strong price levels, i am expecting a bounce in the broad market as soon as tomorrow. this reverse bubble has got to pop someday...and as these charts are collectively telling me that the broad market should not be able to fall much lower...but do keep in mind that these charts might still fall lower on the daily or weekly chart but in terms of the monthly, this should be the lows for now...just be careful as something big has to happen to push up these markets and get buyers out of cash and out of shorts...maybe a short squeeze of huge proportions, built up from the huge fall caused by the short ban is the catalyst we have been waiting for...i would not be surprised...