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Now It Gets Tougher
October 22nd, 2008 at 8:49pm · 1 Comment
The move from the top to the bottom of the 60 minute channel was the easier market read. Now it gets tougher. Does the market find support at that channel? Or does it continue lower to the 135 minute and daily channels (currently 835 and 831 respectively). The late bounce suggests stocks are trying to find support here. But there’s no divergence on the 60 minute time frame of note, and my calendar work has pointed to a test of the October 10 low occurring as close to this Friday’s close/Monday’s open as possible. So on balance I think we head to those lower channels. An updated Solunar Model chart for the Dow is included this evening for you viewing enjoyment.
Tags: Day Trade · General Market Commentary · S&P 500
1 response so far ↓
1 muellerjoerg // Oct 23, 2008 at 1:26 pm
Currently, it looks as if the darkest dreams will come true in this darkest time of the year.
I’m certainly very green in the markets, but it seems so many historical models break down in these days. I think this is what is called a “fat tail”, if I’m not mistaken. You hear things like VIX>30 and the market turns up or after two distribution days the market is up etc. Instead it’s down down down. I don’t know how you feel, but I have not seen this before. Like a wise poster said earlier here, everything’s possible in the market and you never know.
Once again thanks to all for alerting me to this.
Joe
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