Home > Uncategorized > Market Review, Thursday October 1: BIG Drop in the market today!

Market Review, Thursday October 1: BIG Drop in the market today!

We had the biggest drop in three months! This excited me, not because I am a bear, but because we are starting to see definitive direction again. I do not care which direction the market goes. I will play what I see, no matter the direction. Whether we go up or down, the more movement the better. The beauty of trading is that we can make money if stocks go up or down. In fact, studies show that stocks drop 66% faster than they rise.

The charts are indicating a confirmed down trend. The SPY (S&P tracking ETF) made a lower swing low and broke down out of a major rising wedge. We closed on a minor trend line which might prove to be minor support. It is important to note the lower swing high(shown by the thick orange line) as well as the fact that SPY touched the lower band of the Donchian Channel. Both of these factors indicate a downtrend. Expect SPY to find some support at the unfilled gap in the 102 area. Anticipate more significant support around the century mark (100) as well as 98.

close up of lower swing high

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  1. October 4, 2009 at 7:31 pm

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