Woohh ! What a day it had been on last Thursday. The DOW 30 just dropped more than 1,000 points in an intraday low. The NASDAQ Composite index and S&P 500 also dropped accordingly. Though the markets recovered most of its loses, it still ended significantly negative. Friday's close continues with the downtrend.
There are many reasons (or excuses) as to why the market dropped in such a way. To me, it didn't matter anymore. What is more important is that we have been expecting a major retracement from the major uptrend (starting from its March Lows). This could be it. However, we need to monitor closely the various critical levels identified in the above 3 majors (see the attached charts).
A study of the daily charts for the 3 majors since the 2007 High shows some interesting developments.
- The last Thursday Lows break below the SMA 200.
- The 2008 breakdown level becomes a resistance level.
Somehow, I do much better in a downtrend. I suppose I will just have to be more thankful during this period.
Cheers !
PersianCat
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