The melt down continues. We have broken 9000 level. Looking back 10 years, the support level is around 7500.
Dow Jones Industrial Average is at oversold condition, but with current credit crisis still spreading and running its course, any technical bounce is possible but would not last long.
Unless you have significant cash positions, wait in sideline. Cash is king in this juncture.
Dow Jones Industriral is moving towards its support areas. The first one is around 12,700 and 2nd one is above 12,500.
The reversal we were talking about came after all.
13,000, well a round number, is the major support. We will see if Dow Jones can hold itself, but the drop today is ugly.
In 2006, RUT performed the best followed by INDU and S&P 500. QQQQ recovered the 10% loss from the mid-year and ended up more than 5%.
Both QQQQ and RUT are in the overhead resistence levels, only INDU and S&P 500 broke out. INDU is at all-time high and S&P 500 is about 100 points away from its all-time high.
Although YHOO has lost ground due to revenue short fall, GOOG looks good. 350 appears to be within reach.
