Recommended Reading

Google Search

Google
 
Charts courtesy of stockcharts.com

Thursday, November 20, 2008

On The Edge Of A Nightmare

It appeared that the SPX was going to bounce off the 2002 low (approximately where the blue line is on the chart). We got a decent rally, but once again, got no help from the treasury market. The yeild on the 10 year barely budged, telling me that the rally would not hold, and it did not. We got another late sell off on huge volume. There isn't much support here, 661 is the 61.8% retrace level, and that is a long way from here.

Huge volume on the Nasdaq as well, although the Nasdaq showed some strength as the technology sector took it's turn to lead today. Around 1268 is the next level of chart support.

The Russell 2000 was horribly crushed again. 412 is a key pivot point, and it melted like butter today. Next support somwhere near 360.

Energy was the weakest sector, followed very closely by financials. XLE is just a hair above making a new low, as oil is now below $50. Just incredible.

Another day, another collapse of the yield on the 10 year treasury. Obviously we have a massive flight to safety.

Some of thee biggest institutions in American business are in big trouble, Everything from GM, F, GE, C, BAC are on the verge of collapse. The wealth of the American middle class is disappearing at an alarming rate. This is going to take years, even decades, to recover from.

I had internet connection problems today, which is the reason for the hasty late post. There won't be any individual charts. I should have an update later tonight.

No comments:

Google Analytics