Monday, October 06, 2008

>Dowjones relief rally should come soon

It seems that most of the ingredients are here for a good relief rally. Fear is through the roof. The fear based indicators such as VIX are spiking higher. The impending doom of USA financial markets is being broadcast on every channel, and every Analyst on the street is debating how we got here and who is responsible. And has anyone noticed that the financials as a whole are not making lower lows inspite of the fact that the news couldn't be any worse.

If you see the above 5 yearly chart of dowjones its trading on that cluster support band which was formed in 2004-2005.
Ideally, It may have another plunge followed by a swift rally reversal to trap the bears, but there are no guarantees that the market doesn't crash either. Maybe we are on the brink of financial armageddon. The truth is we won't know until it's in the rear view mirror, so the best we can do is wait patiently to pounce on the rebound.



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