Just looking at a few charts, and I'm left with two thoughts overall: markets better bounce ASAP if this isn't gonna be a fresh heavy down wave AND this sure looks like a fresh wave of down that should at least have a brother.
IBM stopped today right above the 50 dma AND at the 61.8% retrace of that charming 17 point rally off the lows. It also looks to me like a stock that broke a trendline (wedge?) and did so with force. Still, this does look like a bounce spot.
SOX looks pathetic. A double bottom bounce might be in order, however. The alternative is smelly.
BTK. . . a few points above the 61.8% retrace of its entire move off the lows. (And below its lower BB, if that matters). Again, a likely bounce spot. But none of these bounces have to be much at all.
And then there's the VIX. I know that historically, when the vix has been climbing and closes over 42, it has gone over 55. This worked well in July. However, I wonder if it holds this time. It might, as we're up from 30. . . but at this point the VIX might simply be making yet another lower high. Then again, it may also have broken out of a bull flag today, and done so with force.
Once again, I'm rambling, trying to put stuff together, and not coming up with a clear picture. But I do love to hear myself type <g>
the freep |
