Exposing Ideas to the Envelope of Serendipity

Contact moo at: bluechipbulldog@gmail.com

Friday, February 5, 2010

The Other Shoe

Spooked by mounting debt worries in Spain, Portugal, and Greece overnight and waking up to a disappointing jobs report that hit the wires as the coffee was brewing stateside,  stocks got slammed on Thursday as the bulls stampeded the exits leaving blood in the streets and a growly gleam in bears' lustful eyes. The $S&P lost 3.1 percent, the Nasdaq Composite 3.1 percent, and the Dow 2.6% as turnover surged in an emphatic distribution day that resulted in more technical damage to the major indexes. The $SPX had reached its back-test target of the recently broken trendline by Wednesday's close, which was shown here in a chart posted Thursday before the opening bell as a heads-up. The moment of truth was decisive and swift, with stocks gapping down at the open and never looking back, save for a brief and minor bounce in the afternoon before resuming their persuasive plunge right into the close. Let's take a look at the warning sign given by the line graph again followed by a more detailed view of the $SPX and some levels to watch going forward.

blog comments powered by Disqus