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8,500 Did Not Hold

Well, as I dejectedly type the the title to this entry I have a weekend ahead of me trying to figure out what the market is telling us by holding 8,500 until 5 minutes before close and then dropping below it in a decisive manner.

My earlier post noted that we were forming a bottom at 8,500 on the Dow and I drew the line on the graph so you could see it. I was feeling good about the market action until 2:55 – we had the big downdraft at the open and got stronger during the day moving above 8,500 during the day. Then, it fell apart in the last 5 minutes.

I'll be analyzing the trends and reviewing the charts this weekend (don't you wish you were me). I still believe we are in the process of bottoming, but it appears that it may be a bit longer than I had hoped. If 8,500 had held, the psychology of it would have been supportive of buyers who need to step into the market and commit some of the > $4 trillion sitting on the sidelines.

More later…