Tuesday, October 16, 2007

Tumble continues....but wait!

Qs tumbled today on accelerating volume. The 7DSMA has now turned down and is at the 3 DMSA cross. If we don't hold and reverse here, we can expect further declines. Putting on my Carnak turban however, and going way out on a limb, I'm predicting a gap up in the Qs at tomorrow's open. Enough said.
The VIX made a doji close on an expanding upper band and now sits 11% above the 10DSMA. If the major market decline continues and that gap gets to 18%, we have an 82% chance of reversal, so I'll be keeping an eye on that development.
Completely aside . . .interesting posting by Bespoke on the best and worst performers in the Russell 3000 to date and the impact of Fed rate cuts on the various sectors.

No comments: