I TRIED, but I simply can't stay bearish.
I could be totally wrong, and my eyes could be playing tricks on me - all I could see from my charts is an UPWARD breakout from their respective diamond bottoms. Prices are at 2008 low, so the odds are really good that from where they are now, the indices could make their way back up to the beginning (represented by blue dotted lines on my charts) of that nearly-vertical plunge.
Bearish candle from yesterday faded Monday's gap in all the above charts, and with the exception of maybe RUT, all indices seem likely to continue to fall to where fib retracement level of 61.8% meets upsloping trendline on charts (represented by red horizontal line).
For Dow, that's only about 50 points below where it closed yesterday.
But the indices should bounce off support at fib 61.8 once they get there - at least that's what my charts are telling me. Volumes are not impressive, but that's not uncommon in the beginning of a rally. A breakout - if it happens - should be accompanied by increasing volume though, if we are to see prices reaching their potential...
While I'm sure that most of us actually DO want the market to at least stop its nosedive, I also know for a fact that many are probably finding it hard to believe that a market in this state is going to be able to stage any sort of decent rallies. US' mountainous debt and the global economic slump are 2 big nagging issues, and it doesn't seem like anyone is capable of saving the day for now.
But who knows, maybe our heroes are going to be the average Joes and the small businesses; maybe even companies that used to be fat but have learnt to operate lean and resourceful?
If there's anything that history has taught us, it is that we are an unpredictable species fully capable of making quantum leaps.
Classic example: while it was predicted that trains would get faster and train travel increasingly more comfortable (and accessible to the point that it stops right at your doorstep), the industry defied prediction, and started failing in the 50s - 70s.
Air travel took its place.
I could be totally wrong, and my eyes could be playing tricks on me - all I could see from my charts is an UPWARD breakout from their respective diamond bottoms. Prices are at 2008 low, so the odds are really good that from where they are now, the indices could make their way back up to the beginning (represented by blue dotted lines on my charts) of that nearly-vertical plunge.
Bearish candle from yesterday faded Monday's gap in all the above charts, and with the exception of maybe RUT, all indices seem likely to continue to fall to where fib retracement level of 61.8% meets upsloping trendline on charts (represented by red horizontal line).
For Dow, that's only about 50 points below where it closed yesterday.
But the indices should bounce off support at fib 61.8 once they get there - at least that's what my charts are telling me. Volumes are not impressive, but that's not uncommon in the beginning of a rally. A breakout - if it happens - should be accompanied by increasing volume though, if we are to see prices reaching their potential...
While I'm sure that most of us actually DO want the market to at least stop its nosedive, I also know for a fact that many are probably finding it hard to believe that a market in this state is going to be able to stage any sort of decent rallies. US' mountainous debt and the global economic slump are 2 big nagging issues, and it doesn't seem like anyone is capable of saving the day for now.
But who knows, maybe our heroes are going to be the average Joes and the small businesses; maybe even companies that used to be fat but have learnt to operate lean and resourceful?
If there's anything that history has taught us, it is that we are an unpredictable species fully capable of making quantum leaps.
Classic example: while it was predicted that trains would get faster and train travel increasingly more comfortable (and accessible to the point that it stops right at your doorstep), the industry defied prediction, and started failing in the 50s - 70s.
Air travel took its place.
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