Another Black Friday?

Looks very much like another Black Friday in the making. The gloom is obvious in the faces of all the CNBC presenters and in the voices of their guests.

The sell-off today in Asia and early on in Europe is looking like its going to be a killer day that may well set new negative records. Currency markets are seeing crazy volatility and futures are really off the wall at -413 on the DOW.

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Early in October, I mentioned that earnings would be a key factor for any downside sentiment but I never dreamed that it would be at this worst-case-scenario. This is surely going to rewrite lower lows. Remember that my low low is at 7,080 on the DOW (although I did mention that it’d be hard to swallow anything lower than 8,000).

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That 8,500 support below that downside pennant is going to be a crucial factor today and if the futures are anything to go by at this time, it’s going to get really nasty and if it does, I won’t be surprised to see DOW close at 8,000 today. I guess we’re going to see really lousy headlines tomorrow morning. October 2008 has been a very, very long month.

Trade safe and always be cautious, please.

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