INDEX UPDATE
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As of yesterdays close my short-term technicals are at the oversold region (20), and some indexes are already approaching CLASS BUYS(XAL,TRAN). For the major indexes(DOW,SPX,NAZ) which are around 20 - just from a mathematical calculation the downside potential is 1-2 more down days(200-400 DOW points), before it becomes a maximum oversold. 7400 may hold and then a bounce off of the 7400-7500 range, but this bounce may be short lived.
What I suspect from my short-term technicals is that the sell-off will continue thru Friday, then a short upswing to start Monday(possibly as early as Friday afternoon). The rebound should not last long, maybe 1-2 days then another selloff to start. If it is really bad this rebound could just be an intraday bounce. If/when the market breaks 7500, such action would imply a break of 7400.
With the futures down so much now, it appears that most of the recent trendlines will be broken today to the downside. I have the next support area around 7700, but since that is only 140 points away the chances of that holding is not great.
For the next few weeks, I will be limited on time so I will post as much as I can. I apologise to those who have sent me posts/pm's if I cannot respond.
Seeya
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