Another very bad week in the markets.
Since the 2600 support level in the Nasdaq was broken, stocks have continued to go down day after day.
A retest of the September lows is now becoming a very realistic possibility.
Our lunar Green Period is about the end, but it is going to be a very weak period and this tells us that we remain in a strong down trend.
Let’s have a look at the Nasdaq chart (click for larger image):
The Nasdaq has come down to 2450 in very quick fashion. This means that most of October’s gains are history already.
With a new lunar Red Period starting tomorrow I would look for some important bottom in the next couple of weeks. The 2300-2350 area should offer major support, and a good buying opportunity if we get there.
Stop loss levels have to be kept just below 2300, because a drop below that level would open the gates to 2100 or even lower.
Stay tuned, Danny
PS: For some unknown reason the comments had become disabled on this blog. This should be fixed now and your comments are welcomed as always. Thanks to the reader who pointed this out to me.
LunaticTrader 