Stock Market thoughts update.......

[gopbuster]

Possible interest rate cut, possibly (radical) another point within the next week (may only go 1/2 at a time.) Per Bernanke

May help, could even give us 1000 point rally to crack above our resistance ceiling in the 9889 area. Not set in stone but possible and will have to build momentum to do it (see below.)

Technically this volatility is not out of the ordinary after setting up a possible bottom.

8443 is a possible support area but it may go on down intraday to retest the 7882 area to see if the buyers are there or just above, maybe 8000 or so.

If the test of the bottom is successful we are moving towards setting up our new trading range between there and the 9889 level until we get more fundamental news, positive or negative.

Watch for a possible coiling (higher highs and higher lows) effect here in the chart over the next couple of days ,HOPEFULLY favoring to the upside which could indicate setting up some short term upside potential as it signifies building upside momentum off of the bottom.

http://bigcharts.marketwatch.com/quickchart/quickchart....

The market is still looking for signs of serious slow down or any guidance or vision from the individual companies themselves to see which way we are headed over the longer term. We are still in earnings season and the companies will give SOME guidance. http://biz.yahoo.com/research/earncal/today.html

The risk is still there we could move to the 5000-6000 area over the longer term if the overall economy continues to deteriorate. This is where the longer term historical depression or recession support level is for now.

That is the best I can do for now.

[gopbuster]

1. I'm going to go ahead and go out on a limb...just for fun (not fun for those with 401K's I know

I think 7900-8150 today for the bottom and then back up to 9250 - 9500 over the next couple days, Then back to the center for friday.

Market will be looking for that interest rate cut. If it is a full point, it could push it up pretty good.

Traders market for now.

[gopbuster]

2. Historical 200 Monthly Simple and Exponential Moving averages

Simple around 8443 and the Exponential at 8694

Market testing the bottom drifting down on low volume

Here is a good guide chart for anyone interested

http://siliconinvestor.advfn.com/readmsg.aspx?msgid=25035098

[Selatius]

3. I think the Plunge Protection Team will work overtime to keep today from becoming a massacre.

They gotta keep up appearances that things are just bad and not disasterous because of weak fundamentals in the economy.

[gopbuster]

4. For those who may not know about the PPT.....

here is a couple of links....


http://en.wikipedia.org/wiki/Executive_Order_12631


http://www.ustreas.gov/press/releases/hp1177.htm



http://www.bespacific.com/mt/archives/019521.html



Yep, and it is my guess it was them who provided support to the financials sector with a show of buying the day we hit the recent low. One of their "tools"

talk to the hand! lol

[gopbuster]

5. An overhead downtrend line comes into play as resistance

which sits at the 9900 area, which is what we attempted to head towards yesterday but stopped short at 9794 when selling came in, 61.8 fibonacci sits here too (9889).

It serves as upside resistance for now