R.C. Market Report 10.08

• Market Trend: Downtrend

• Global interest rate cuts were announced pre-market and eventhough the market did open on a gap down, a rally ensued immediately. It was very disappointing to watch another missed opportunity for a washout. Of course, without the washout, the rally lacked enthusiasm and traded in a choppy fashion within a range.

• Psychologically, we've now had a couple of instances where the market rallied rather prematurely, trapping the longs that were too anxious to jump in. This is why I had waited for a washout. Fundamentally, I am clueless as to what news would grab the headlines the next morning, and what the market response would be. Technically, we now have 6 straight days of selling, putting us in a highly oversold condition, that the next new trade has to favor the longs. Hopefully that answers the question posted by 'evolnomis'.

• Late day sell off put all of the major indices in the red. I view that final hour of selling as the washout. It's not to the degree I prefer, but the market doesn't listen to anyone. We had the biggest volume since the short-ban was placed, and we did it without the participation of the shorts. I consider that to be significant, and view today's price action+volume as exhaution of sellers. I believe we have a bottom today, not THE bottom, but a bottom. However, only a confirmation tomorrow would prove my worthiness.