Thursday, October 16, 2008

Today's Markets

Remember -- this is still a very bearish chart.

-- Prices are below all the SMAs

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

BUT --

I drew three lines to show the points where I think the market should consolidate between. Remember, the market has dropped hard.

We're at 2002-2003 levels right now. So this is fundamentally a good place to consolidate simply from a time perspective. We're also very oversold still (and will be for a bit).