Successful Retest?

November 13, 2008 at 12:35 pm  ·  Category: Market Commentary, Technical Analysis

The same can be said about the overall market: We’re looking at a retest of the lows from October 10 (840 intraday) and October 27 (848 close).  If those lows can hold, we’re adding even more support to the market at those levels and putting in place a potential bottom.

“Best Buy: Worst Retail Environment Ever”, Top Gun FP, Wednesday November 12

A little before 1pm EST today we broke through the October 10 intraday low around 840 on the S&P 500.  The S&P then dropped another 20 points in the next 10 minutes all the way down to 819.  Since then, in the last hour and a half, the S&P has rallied about 50 points (6%) from that level all the way back to around 870 (S&P Intraday Chart).

This has the feel of a successful retest.  This is just more confirmation that a bottom is being put in place and stocks are to be owned at these levels – at least for the intermediate term.

Also see:

“Retest of the October Lows”, The Big Picture, Thursday November 13

“The Analogy to 1987”, Top Gun FP, Tuesday November 11

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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