BRIEF STOCK MARKET UPDATE (3:30 pm EDT)
The DOW dropped an astounding 1000 points on the initial opening of the markets today, gained most of it back by mid-day and is now rolling over and falling again. This is the high volatility roller coaster we were expecting and is typical of markets in a state of panic. The S&P 500 plunged close to our target support area (1860) before bouncing, but the DOW broke through support at 16,000 and plummeted to a second support level at 15,400 before its rebound.
The fact that these rebounds rolled back over so quickly is suggesting that a short-term bottom may not be in just yet so I am not taking profits in my short position today. Holding my short position in the broad stock market but still on alert for a short-term bottom this week.
The DOW dropped an astounding 1000 points on the initial opening of the markets today, gained most of it back by mid-day and is now rolling over and falling again. This is the high volatility roller coaster we were expecting and is typical of markets in a state of panic. The S&P 500 plunged close to our target support area (1860) before bouncing, but the DOW broke through support at 16,000 and plummeted to a second support level at 15,400 before its rebound.
The fact that these rebounds rolled back over so quickly is suggesting that a short-term bottom may not be in just yet so I am not taking profits in my short position today. Holding my short position in the broad stock market but still on alert for a short-term bottom this week.
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