R.C. Market Report 10.22

• Market Trend: Neutral (error on yesterday's)

• With the market breakdown today, it looks as though we've completed forming the first leg of the bottom formation, whether it ends up being a W pattern or a head-and-shoulders pattern. The market sold off on larger volume than last few days and I believe we have at least one more day of selling left. One thing to note from today's action was the late buying bid that had volume behind it. In the near term, this late day rally will provide room for further sell off, but in the long term, this may be large institutional buyers coming in. If that's the case, we are very close a reversal. Watch the price level of Oct. 10's close because it seems likely to be tested again tomorrow. Time to buy longs isn't here yet.