The Dow fell 265 points today, and all 30 of the components declined. This is typically a good time to buy; investors are selling good companies along with the lesser names.
Investors have been bearish since the Fed announced that it would buy long bonds to support a weak economy. But we already knew that! Is this a case of the "big guys" driving the market down so they can pick up some bargains?
2 comments:
According to my experience, a selling panic is a bullish indication only when it comes after a prolonged and persistent market decline. The current fall of all Dow stocks is rather a bearish sign; not bullish.
Giorgos Siligardos
Daily volume on up days was consistently lower than volume on up days for the past 3 weeks or so. There was a MACD cross on the DOW yesterday. The high end restaurants in New York are seeing a decrease in volume. Cars in the mall parking lot across the street have been moving closer to the door for the past 3-5 weeks.
Either this is a handle on a small double bottom or the right shoulder on a larger Head and Shoulders top. If the latter, the price target on the DOW is ~8300-8700. The bullish news is the "Big Boys" have drawn a resistance line in the sand @ 10,000.
My short term DOW target 10100 w/i two weeks. Probability ~55%
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