Stock Market Analysis - 12-01-2008
Hopefully everyone had a good Thanksgiving weekend. The market got back in its groove with a huge late move downwards, but with lighter than normal volume. The sell-off shouldn’t have surprised anyone given the weakness of the previous week’s bounce. The real question to ask is, "How deep will this dip go?" We haven’t truly taken out the lows from 2002 yet, and I would expect at least a little more short term support there ($75 on the chart above). That still leaves 9% to the immediate downside though, and with the current fundamentals I wouldn’t be surprised to see that short term support fail sooner rather than later. So what does that mean? It means you should keep avoiding bullish positions and try to open bearish ones.
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