That seems to be the likely scenario. The COMP is a lot weaker looking than the SPX, the Nazz 100, or the Dow, to my thinking.
We came within about 5 points of the low of the year I think on the COMP.
My guess, and this is just a guess, is that we will break down on Monday (or perhaps Tuesday) and that breakdown could easily be the bottom of this move. Factually, the long-term chart on the COMP looks like it could really get crushed from here, another 400 points. But I really doubt if that will happen, simply because the other charts look less weak. OTOH, if the move is down and the recovery does not occur very, very quickly, (like it has the last 5 times this has happened) it will baffle all the regular ordinary TA people, and that will baffle the market, and the uncertainty from that, coupled with this nonsense about the election, could create a little selling frenzy.
We are close to a bottom for sure, I just have no way of seeing where the bottom is exactly on the dang chart. I need to see what happens next week to be able to make a more accurate call. Playing Nov calls sounds pretty smart if you can really get in at a good low. |
