5 day bounce suffered a serious blow | stockbee

12/02/2008

5 day bounce suffered a serious blow

  • 5 day old rally suffered a serious blow after holiday week was over.
  • The MM 4% breakout ratio is 80/3101. Half trading day on Friday is one of the reason for such a high ratio.
  • It was the 4 th largest decline in Dow Jones index since its inception.
  • A pullback of some kind after a 5 day rally was expected but the market action on Monday went much beyond a pullback kind of action.
  • Market opened lower and kept going down.
  • At this stage the lows established in October still holds

1 comment:

Whitey said...

In terms of the S&P 500, the October lows were taken out on 11/20. The closes on 11/20 and 11/21 were both below the October lows. How can you say that the lows established in October still hold?