If you didn't hear what the market was telling you yesterday, then you must heard it today. It is saying "I'm going down!" Either you come along or stand aside. With the high volatility, it is very difficult to countertrend trade this market. It is much safer to just trade with the trend. That's why I will only buy the inverse ETFs on rallies.
Today, the market went through the October 10, 2008 intrady low like it wasn't there, and made another confirmed new low. The next nearest support level is 7,397.31, the intraday low made on March 12, 2003. If it break this support level, next support will be the October 10, 2002 intraday low of 7,181.47. With the market at 7,552.29, it won't take much to get to either one of these support levels. How the market will hold these support levels will give us some clues on how low it might go. If it doesn't hold these supports, odds are the market will go below 7,000.
Just keep watching and listening to what the market has to say (or continue to visit this blog.) The market will not sneak up on you or hide its intention from you if you pay attention. Right now, its intention is clear "I'm going lower."
