Technical Analysis Trading

StockTock.com 9/29/08 ~ Stock Market Technical Analysis
stocktock
11 min - Sep 30, 2008

StockTock.com discusses today's historic selloff. We discuss some general rules that traders should keep in mind in this dangerous market environment. Most importantly: Don't trade just to be in the action. We bring back our Elliot Wave forecast to project potential levels of the support for the S&P. Several important technology stocks are broken, but the NASDAQ is sitting on a 50% retracement level. This does not tech will necessarily bounce, but its a level to look for signs that buyers are stepping up. In the medium-term, I expect a weaker dollar and stronger gold. This remains a day traders market. I expect more downside in the days and weeks ahead, but there will be bounces along the way and the threat of gov't intervention is always on the table and must be factored into trading strategies. Tomorrow is a Jewish holiday and is usually a lighter volume day. Watch for a pause day / small bounce to follow this massive move lower.

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