Friday, September 05, 2008

Great Rally!

Well that was a bit of a turkey. Bears have really set the tone for the next few days and bulls will have to get their finger out if they are to halt this slide. Bullish Percents took a universal dive across the board.




But the real casualty on the day was the NYSE.


With such comprehensive damage it is looking more and more likely the Dow and S&P will follow suit down past July lows. Given the relative position of breadth indicators (neutral to overbought) there is room to see this evolve into a more substantial decline with the possibility of a bear trap relatively slim.

I don't know if Russell 2000 support will be enough to save the market (August 25th comments still valid today):




Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
 
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