http://trend-signals.blogspot.com/2008/01/big-bang-day.html
we now have another bigger reversal day with greater power.
Today, we have intraday range of:
DOW 631.86 points (5.15%)
Nasdaq 117.59 (5.08%)
SPX 69.04 (5.16%)
Qs 2.54 (5.77%)
QID 6.35 (12.60%)
I noted lower VIX reading right after 1 pm LOD price action, which was the indeed the LOD, and markets rallied signaling the retest of the Lows, so far.
With the additional news that the Fed could cut another 0.75 % on the Fed day, Jan 30, market rallied making the stronger reversal day.
After my analysis on market breadth, I can conclude that markets are very oversold at the support level which I noted for this market correction to SPX 1275 +/- level.
We have distressed sectors rallies such as XHB up 12.40% today and up 34.69% from 52 wk low. Also, COH reported a good earning today, XLY up 8.31% today. These two sectors are most distressed sectors which are now signaling a recovery.
After seeing my projected market correction level of SPX 1250 - 1275 +/- and based on other market analysis indicates that we have seen the worst of market condition and will see market building bottoms at this level to trade up for the next few months, if not, close to lows of the year.
We have MSFT earning report tomorrow, therefore, with the higher volatility, we have higher risk/reward in the current market condition. Furthermore, SPX 1600 for the 2008 target is not out of question as I think that it could be accomplished.
Come on Baby, Light my fire: All-Time high short interest.
http://youtube.com/watch?v=Py_JN5lPCC0
http://trend-signals.blogspot.com/2008/01/big-bang-day-follow-up-with-bigger.html
NEW YORK, Jan 22 (Reuters) - Short interest jumped 8.7
percent on the New York Stock Exchange in mid-January, rising
to an all-time high, the exchange said on Tuesday, as short
sellers sought to take advantage of a global sell-off in
stocks.
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN2234246720080123
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