How much longer will this flea market be correcting.??
Answers:
I see subsequent downside resistance at Dow 12,700; if we break thru that slickly, who know's, in recent times may be "Katie Bar the door!"
i presume it get to 14000 by the expire of the year
I suspect it will be better in 2008 and much much better by 2009
hope im right :)
Nobody can predict the adjectives, but if this is similar to most bull open market corrections -- more or less 10% -- it may soon be over. Watch for a 2% up move contained by a leading index (Dow, Nasdaq or S&P 500) on double average volume (you can find the average volume for any given index on Yahoo! Finance) as a virtuous sign that the bottom have be made. This is the system used pretty successfully by Investor's Business Daily to time the souk.
I surmise this correction is not so much sub-primes (although ignite by that) but is immediately because of Yen Value appriciation. If you look, the yen have dropped further (about 116.5 right now) and have started a longer possession downward trend (although a common short permanent status upward trend as normal).
All the yen that have fueled the world's investments are doing some profit taking right very soon and the flea market's won't rest until the yen begin to come rear.
Breaking through the 1300 trend strip is significant and making most investors more bearish in the short permanent status. I'm confident of a 500point up week when the downtrend is over, but i can see it going down more until that time it go up.
The open market is other correcting, the ups & downs is what
make it a risky endeavour. If your waiting for it to stop, its
not gonna begin. l deem the souk is going to continue
to fluxuate until after the presidential see, the mortgage
loan issue (among others) will probably become a political issue, and we will own to keep on till the presidential enclosed space get down to the 2 finalist earlier we attain a sense of how things will be handle. Election years other generate the marketplace violate.