Another miserable failure in breadth drove the 10% Index to -877 and the MCO to -235. Even though the markets are extremely oversold, the possibility of another nasty down day is still active.
When a market is this weak on the third retest of the low, no ensuing rally should be trusted, The FED has lost control of the markets and the economy. President George Bush is hiding under his bed wishing it would all go away. It is fairly clear that at this point there is no possibility for a durable bottom at these levels and that we should expect the DJIA to fall another 1200-1500 points towards the 6800 target in my previous post.
Please be aware that unless we crash in the next two days, my lower projections most likely will be achieved after an intrim rally. Any such rally should be sold.
Note the small daily change which indicates
Tomorrow is a big move day, but which way?
Click to enlarge.