John,At first margin calls has to evaporate,after you have to find some buyers,which can be difficult because everybody are scared.
We stay at 3250 on NASD,what I doubt now, or the next target will be at 2820-2900. I still expect a short covering rally and option expiration week and it is very likely, that we can get to 36000-3700 area on NASD.Keep in mind CSCO.
If CSCO will crash,I suggest to watch only weekly graphs,with Fib.50 or 61.8%,that gives you 2700 or 2130
respectively.
If DOW will go below 10,000,which is still psychological barrier,next step would be 9400 and the further 9100- 8900
where I can see a lot of support.
As long as I will not see the buyers,this is only theoretical conversation, but the real bottom should be probably in that ranges.
el paradisio |
