Mohan, a description of near future [-g-] techstocks.com
There was a 7% break on Oct 23, 1929 on high volume, which was followed by partial recovery next day on record volume. Recovery was staged by Morgan partners, bankers etc who made public bullish statements and publicly placed big buy orders. And some Cos. were announcing buybacks etc. Next week the real Crash started.
Also, earlier, on Oct 3, there was a 4.2% break, followed by a smaller drop next day, with high volume, which took Dow 13% off the Sept 3 high (381). At that time, there were declarations by major businessman and industrialists: "American markets generally now are in a healthy condition" [Mitchell] and "In my long association with steel industry I have never seen it to enjoy a greater stability or more promissing outlook than it does today. [Schwab]
I'm a little unclear if last Mo - Tue is equivalent to Oct 3 or Oct 23. Anyway, there should be a "test" of recent lows, if it's on a decreasing volume, it will likely imply a (at least small) rally. If volume starts to build up, test does not hold - then all hell will break lose.
Joe |
