"with more bad news streaming in throughout the week, I anticipate we'll close lower next Friday than we did this last Friday and expect that we may even test the 6,400 levels throughout the week."
Well, after today I'd say we're pretty darned close to 6,400 - lets see what the release of our new/updated US unemployment figure brings with it tomorrow...
Looking at the first chart below, it's pretty staggering that, in such a short span of time, the DOW has undergone a > 50% haircut. Where/when will all this carnage end?
With the above chart digested, let's take a wider look - at the historical perspective (next chart). Pretty ominous isn't it? This historical view illustrates the serious "potential" for an even much bigger correction - back to the trend line?
Click picture for sharper image
I anticipate (based on oversold conditions/falling PPO and quickly approaching 1995 support levels) that we may see some further downside in the days ahead, but due to these same issues the DOW will likely find downside support soon and then it will follow up with a nice rally (8K) - before falling to new (significantly lower) depths.
DOW: Where's the floor?
Is this 1930 all over again?
just my 2cents - not investment advice