Dow Breaks 9000 Points!
The bulls of yesterday were whipped mercilessly today by the rampaging bears as the Dow continues its short term and primary bear trend, breaking the 9000 point level like it doesn't exist.
In fact, today's merciless drop have the Dow touch its 200MA on a monthly time scale for the first time since 1982! Yes, the first time in more than 20 years. Interestingly, no matter how bad a recession or depression was, the Dow always managed to rebound right around its monthly 200MA region, although not immediately in a V shape. However, it does tell us that the worst is PROBABLY over. Again, can I be too sure of that? No, I cannot, simply because this is a crisis none of us have seen in a very long time and way too different from what we have seen before. The only thing to rely on for the short term right now is the fact that the Dow (as well as all the major indices) are in short and primary bear trend, which should continue until something significant changes.
In fact, today's merciless drop have the Dow touch its 200MA on a monthly time scale for the first time since 1982! Yes, the first time in more than 20 years. Interestingly, no matter how bad a recession or depression was, the Dow always managed to rebound right around its monthly 200MA region, although not immediately in a V shape. However, it does tell us that the worst is PROBABLY over. Again, can I be too sure of that? No, I cannot, simply because this is a crisis none of us have seen in a very long time and way too different from what we have seen before. The only thing to rely on for the short term right now is the fact that the Dow (as well as all the major indices) are in short and primary bear trend, which should continue until something significant changes.
Labels: 2008 crash, fundamental analysis, technical analysis
posted by Jason Ng at 6:10 PM
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