face down friday, page-10

fwiw, i'be been shorting the indices lately but after today's drop in the DOW i get the gut feeling that we may see a turnaround soon...next week should be positive.

huge drops on large volume will not go on indefinetely...
with imminent rate cuts and possibly other measures to maintain stability, i think a rebound is not far off.

if you look at 200MA on the dow, we are about as far away on the downside as we were on the upside, so a return to the mean is likely to start around here (maybe 12000points)

there's also a nice channel that could be drawn on the dow at these levels with the low experienced in 2003.

of course we could be experiencing the start of a crash which loses thousands of points, but imo that is unlikely.

a more likely scenario is that the dow experiences a similar pattern to year 2000-2002, which also included a recession.