Wednesday November 19, 2008
Navivest

With the rout we saw in the stock market today, that had the Dow, Nasdaq and S&P 500 shed 5.07, 6.53 and 6.12% respectively, we are hoping that the rebound that we have been looking for, will come tomorrow.

Today’s action should be a watershed that will hopefully give us a temporary bottom that we can bounce off of tomorrow.

From a technical and psychological standpoint, we do need to see some buying and a strong move to the upside tomorrow. We are already trading at levels we haven’t seen in five years and further violations of long-term support areas could result in further significant losses in shareholder wealth as those who for whatever reasons are still holding on to their stocks, decide to dump them.

If we have any buying in early trading, we would recommend getting in, so as not to miss a technical rally.

Tags: Technical Analysis  Stock Trading  Dow Nasdaq