Friday, September 19, 2008

One more week?

Yesterday was a whopper for the bulls, but there may be enough squeeze room for a retest of the week's lows next week. Why? Looking at the weekly spread of indicators, other than the VXN there hasn't been the broad level of confirmation typical of a weekly bottom - particularly from the Call-Put Ratio. Obviously, based on my prior post none of these need to drop to levels where typical bounces occur, but it would be more comforting to have at least 3 of the 5 at historical bounce zones. Next week could be the week which does it, but this could mean another week of losses.

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