Update: Make that 8 straight losses for -23% in October 2008
Posted by themarketanalyst on October 12, 2008
The DJ and the S&P500 lost more than 1% for an eighth consecutive losing session in October. So far this month, we have seen a -23% loss for the NY stock markets. However, this eighth session was tremendously volatile. The good news is that there were some tremendous rallies before closing very far above the intraday low. <u>Therefore, I dare say that we could have found the bottom.</u> Let’s keep our fingers crossed. If we consider the intraday low, then the Dow Jones has seen a 29% loss so far this month. That is almost one third loss of value!
Furthermore, that intraday low at the 7,800-8,000 level for the DJ coincides with a long-term bullish trendline. It appears to have performed as a solid support level on Friday. We could very possibly see a rebound here and the first winning session of the month on Monday.
