Author: World Worst Stock Picker
Website: http://worldworststockpicker.com/2008/10/11/sell-sell-sell-g…
After watching bubblevision (CNBC) for most of Friday and witnessing a super volatile session (Down 700, up 100, down 400-500, down 800, up 100, down 200, VIX (fear index) at 75 for the first time ever); I asked myself if this could be the bottom. My gut instinct said yes.
Now studying the charts teaches us that bottoms are a process that can take months. I can probably say that the process is starting.
1. Bull markets are characterized by sell-offs early in the day and rallies in the afternoon. We saw that on Friday.
2. The DOW traded in a range of over a 1000 points. A lot of bulls finally gave up and wanted to get of the market at all costs. I could feel the capitulation.
I offer below the S&P 500 weekly chart from 2002 to last Friday. We can see that the bottom was tested three times. Each test of support came with lower volume. This process took from July 2002 to March of 2003.
I am not going to say that is the definite bottom. I need the market to show me that the lows of… (Read the rest of this article at the following article source link for the full story)
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