What to Watch for Today

The Dow and the S&P are liable to open much lower but above the intra-day lows of October 10th; for the Dow that is 7882 and for the S&P it is 839. The Nasdaq will be a lower low.

The triangle I've been talking about for a few days will be broken to the down side. If the market does not turn up quickly then we have a very good chance of revisiting the lows of October 2002 which I've been writing about since my first post. That would be Dow 7500 and S&P 800 (approximately.)

Market traders always like to see a big high-volume swoosh down at the bottom of markets - capitulation is what they call it. Everyone who wants to sell, whose been thinking of selling, long-term investors who are scared of losing their entire life savings and have lost faith in the long term prospects of the market, sell and when the market finally shakes out every weak hand in the market, then we will have reached bottom.