I agree Daytr
Rotten day but a nice eventful end..The crucial must hold support 15400/15500 did hold and buyers came back in and late in the day the DOW rallied to be "only":t_up:;) 15767 -249 -1.55%
This may signal a bottom and a rally to commence ...but as I'm in the Bear market cycle camp I personally expect the next rally to be the sucker type...It could be a rally event such as a dead cat bounce but looking back to previous bear market cycle charts it wouldn't surprise me if the next rally was a couple of months long which could extend the life of the bear somewhat...If the extended rally does occur it would be destructive as the feel good factor returns, the "told you so" bull brigade will be trumpeting their expertise swaying the inexperienced herd to re-enter...
Things to watch with the next rally...Sucker rallies always fail at a resistance level..so never buy close to a resistance level not matter how rosy things look...
The chart below is very messy but I've tried to cram in a lot of information...I hope it is helpful...
Also I couldn't resist having a dig at the FA discipline...TAers are out of the market as TA has confirmed a Primary Bear tide (signaling a big chance that a Bear market cycle is operating)...They are waiting re-entry using "rowing" strategies thereby have perserved their capital...FAer (longer term) still in "sailing away" awaiting Bear Market confirmation (+20% drop) to occur (14680)....If it occurs there will be another breed of investors hitting the exits and this will cause a loss of buyer momentum hence another down wave, perhaps a stampede.. a +20% loss realised guaranteed..
http://i458.photobucket.com/albums/q...20012016_4.png