Market Observations 07/11/08
Resistance: DJIA 11400 (1200DMA); SP500 1280 (1200DMA); NAZ 2280 (1000DMA); NDX 1860 (500DMA)
Support: DJIA 11000 (1400DMA); SP500 1225 (1400DMA); NAZ 2230 (1200DMA); NDX 1785 (750DMA)
SP500 1253, gap down to open 1248, plunge to new low 1225, bounce to 1256, fade to close 1240.
NDX 1840, gap down to open 1820, dive to new low 1784, rise to 1840, fade to close 1810.
Last WEN: Two words, limitless downside. Two more words, get out.
Last THU: Hi tech head fake under way, batten the hatches and secure everything, we sense a bounce. But do not be fooled, we sense things are just starting to get grim.
TUE: The credit crunch is worsening; demand destruction is only now reaching full intensity; further macro deterioration in terms of "growth" and unemployment by year end.
WEN: Most investors portfolios are like a frog in a slow boil. Near term, we sense NDX 1600 around Aug 18th, next target NDX 1250.
THU: MBIA & Ambac AAA downgrade still playing out; now GSE death watch, next act GM or PMI insurer BK?
DJIA fell below 11K; SP500 down 23 to put in a new multi year low at 1225. Late day bounce saved a disasterous day.
Looks like a Fannie implosion could take this dead man walking to new depths. See "S&P500 Bearing Out" for more comments.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Support: DJIA 11000 (1400DMA); SP500 1225 (1400DMA); NAZ 2230 (1200DMA); NDX 1785 (750DMA)
SP500 1253, gap down to open 1248, plunge to new low 1225, bounce to 1256, fade to close 1240.
NDX 1840, gap down to open 1820, dive to new low 1784, rise to 1840, fade to close 1810.
Last WEN: Two words, limitless downside. Two more words, get out.
Last THU: Hi tech head fake under way, batten the hatches and secure everything, we sense a bounce. But do not be fooled, we sense things are just starting to get grim.
TUE: The credit crunch is worsening; demand destruction is only now reaching full intensity; further macro deterioration in terms of "growth" and unemployment by year end.
WEN: Most investors portfolios are like a frog in a slow boil. Near term, we sense NDX 1600 around Aug 18th, next target NDX 1250.
THU: MBIA & Ambac AAA downgrade still playing out; now GSE death watch, next act GM or PMI insurer BK?
DJIA fell below 11K; SP500 down 23 to put in a new multi year low at 1225. Late day bounce saved a disasterous day.
Looks like a Fannie implosion could take this dead man walking to new depths. See "S&P500 Bearing Out" for more comments.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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