The VIX is at levels that call for a reversal, right at September highs. That is one notch for the bulls, but it does not mean their troubles are over. Lots of folks with nice gains for the year on some high flying stocks will want out on rallies.
Not to state the obvious, but we are at a critical stage. The COMP is fast approaching its 200 dma at 2590, which could be where this bloodbath is headed. NDX did hold the September 4th high at Friday's close, but SPX is getting dangerously close to retesting 1450 for a third time. I would be very sanguine on the upside if it weren't for the fact that ISE is still way up there, equities closing at 173. It did fall from a high of 244 last week, so maybe this is only opex related. We are due for a very strong bounce, but proceed with caution.
Not to state the obvious, but we are at a critical stage. The COMP is fast approaching its 200 dma at 2590, which could be where this bloodbath is headed. NDX did hold the September 4th high at Friday's close, but SPX is getting dangerously close to retesting 1450 for a third time. I would be very sanguine on the upside if it weren't for the fact that ISE is still way up there, equities closing at 173. It did fall from a high of 244 last week, so maybe this is only opex related. We are due for a very strong bounce, but proceed with caution.
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on Saturday, November 10, 2007 at 11/10/2007 09:18:00 AM.
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