Hmmm... despite the obvious factors and predominantly the War issues and a weakening US economy, the question remains as to whether we are witnessing the Bears bottom?
The Chart shows the ranging nature of our Market in the last few months which technically suggest a tentative bottom.
Generally, analysts agree our Market is oversold.
We know the Markets slumped at the outset of the Gulf War then rebounded strongly ... this no doubt due to a what was a speedy outcome and decisive victory for US led coalition.
Such as speedy repeat is not guaranteed with the proposed war againt Iraq this time.
The Chart shows what is a defining moment and that with today's opening action is sitting firmly on an important support level.
If not otherwise distracted, it would be reasonable to consider going LONG for traders.
With important dates coming up over the next two weeks we might witness a downward break thru this level ...
This could cause a free-fall if what little investor confidence evaporates.
In that event, the next is 2900 and could represent 3-5% drop to selected 'blues' ...
