Wednesday, October 22, 2008

Stay Tune.

Another wild day in the market today. The market closed with the Dow down over 500 points after being down nearly 700 points with less than an hour before it closes. The SP500 didn’t fare much better, it closed down 50 points below the 900 level, and the NASDAQ closed down with a loss of nearly 81 points. Advance and decline ratio was 5 to 1 favoring the decline for both the NYSE and the NASDAQ. And looking at the up/down volume in the NYSE, 52M up vs 1.46B down, that is 27 to 1 ratio in favor of down volume. For the NASDAQ, the ratio is much better but still leaning toward the down side with a ratio of nearly 7 to 1. Today’s closing level bought the SP500 and the NASDAQ to close below the October 10, 2008 close. While the Dow is still above the October 10, 2008 close, this still doesn’t mean the worst is over and the market has bottomed. So stay tune and keep watching for the market to signal its bottom.


Share It