It isn't entirely inconceivable that the INDU, SPX, etc., will move back down to the middle or lower Bollinger bands -- or, all indicators aside, that they'll go back to the middle or bottom of their trading ranges -- for no other reason than the fact that they do it all the time, that they move up and down in waves of buying and selling. But as you say, the question is: How far down this time, and do we get a new low or a new uptrend? Is there anyone who can answer that? I tend to doubt it.
Maybe some Elliott Wave analysts could weigh in here, and make some predictions. You'd probably get many possibilities, many different views on which wave we're in now, many interpretations of the waves, many predictions, a lot of ifs, ands and buts, some provisos, qualifications, limitations, stipulations, etc.
The Upson Downs Hypothesis is the best I can do.
I wouldn't be planning on a quick bounce, and rushing to buy Monday or Tuesday on weakness -- not without tight stops at least. That would be buying at the beginning of a move down, right after the first sell signals were given.
There might be some good buying opps. in some sectors, though, such as energy.
But whatever. S'all alchemy. Where's my astrolabe? Or at least: It's all money management, as Dick Brown said. |
