The damage continues as pundits keep calling a bottom and it is nowhere in sight. We need a true capitulation day or we will stay range-bound through the end of the year. If SPX loses 1180, it is a ride straight down to 1140. A possible crash scenario (always a low-odds play) would have that DOW gap at 9487 (October 2003) a likely target. I have mentioned that target since July and there is no better environment than now. That said, I notice lots of put activity for next week and that is usually supportive. The big test will be the July gap close for NDX at 1533 (QQQQ 37.77). Not very far.
This entry was posted
on Monday, October 10, 2005 at 3:24 PM.
