Market Update 19 Nov AMC

Posted by Conrad
November 20, 2008

Earlier this month, on 6 November, I wrote;

My downside support remains at 7,400 and 7,080 with no further upside than 10,800 and 11,200 … For November, I am looking at a range – DOW’s low should hold above 8,380 and the high should resist at 10,200 … If I don’t get a bullish bounce at 9,080, it’s bye bye DOW all the way to 7,800 again … and maybe beyond that too.

DOW19NovAMC
Well, we didn’t get that bounce at 9,080 and we’ve broken below 8,000 after failing to hold above my 8,380 retracement level. This means DOW is only 115 points above its 10 Oct low of 7,882. After that, it’s bye-bye all the way down to 7,400 and beyond that, 7.080 – my ultimate XXOP support level.

The next couple of days will be crucial for those who have called a bottom on the market at 8,000. Anyone still hopeful that the market is at or near its lows will sweat if and when we do tank further and the papers are going to be full of it again.

Like I said so many times in the past, “watch out for dead cats” and don’t anticipate the market. Trade safe everyone!

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