Video Stock Market Technical Analysis 8/16/07

Maybe my class on selling short was a good contrary indicator? Don’t forget who first pointed out that it might be one. Two questions a trader/investor should always ask before entering a position are; where has the market/stock come from and where does it have the potential to go until there is a reasonable expectation for support or resistance to be found? Was it the 200 day MA on the Qs that motivated buyers? Or was it the measured move target in the SPY being attained? We’ll never know but the markets are still in a severe downtrend and rallies from here are likely to fail. The usual warnings continue to be valid, only the most disciplined and aggressive traders should be attempting to navigate this volatility.