bottom forming based on the following

i beleive we have hit the bottom, ie 7888 for the DOW.

i beleive this to be the case because of the following:

1. VIX hit a record high of 74.46, the highest ever recording. this shows the fear was extream, as this reduces the rally will start and we will get a rally back to 10,000 a think.

http://www.bloomberg.com/apps/quote?ticker=VIX%3AIND


2. a number of articles and commentators coming out saying the bottom is here, this makes the market beleive the story and brings back the buyers.

Jefferies' Hogan: Market Will Bottom Today
Topics:Earnings | Nasdaq | NYSE | Stock Picks | Stock Market
Companies:General Electric | IBMBy CNBC.com | 10 Oct 2008 | 10:48 AM ET Text Size Attention bottom fishers. Pay attention today because the market will finally hit bottom.

That's the bold prediction of Jefferies managing director Art Hogan, who told CNBC, "Enough is going to be enough. If you look at all the carnage we've done to major market indices the bottom gets put in today."

Hogan says, explaining that investors have been ignoring such good news items as earnings from IBM [IBM 87.19 -1.81 (-2.03%) ] and General Electric [GE 19.01 --- UNCH (0) ] (parent of CNBC and CNBC.com), interest rate cuts and other government intervention measures into the market and engaging in "indiscriminate selling" stocks.

Hogan says this weekend's meeting of the Group of Seven nations will help boost confidence.

Stocks will go up, he says, and that "will cause the same kind of self-fulfilling prophecy" as it was on the way down. "People will say 'I don't want to miss the bottom' and get back in."

As you can see from the accompanying video, Hogan made those statements several minutes before the stock markets opened Friday. At around 10.03 a.m. ET, the market turned higher -- if ever so briefly.