PANIC...

If an investment giant like Lehman Brothers could get cremated by the flames of this credit crisis, who couldn't? But is this the capitulation everyone's waiting for? Certainly unemployment rate is already near capitulation levels. Does this mean that the kitchen sink is finally draining its last bits? The big thing tomorrow would certainly be the FOMC announcement. With the recent gain in the dollar, the Fed certainly does have all the ammunition to cut rates and start a turn around story (which is also why forex traders have already started shorting the dollar over the past 2 days). Things certainly does look like they are all falling into place.

On the technical front, the Dow broke down and resumed its primary bear trend. Again, not strange to see a little pull up tomorrow no matter how the news turned out. Immediate support on the July low of 10827. The Nasdaq composite also turned back down onto its 2200 support level, closing slightly below that level (not significant enough to call a breakout) with strong volume. As the old saying goes, "there ain't no such thing as a triple bottom". With the Nasdaq's declining trendline strongly intact, chances are we will see the continuation of the primary bear trend with immediate support at about 2100.