Dateline: 8:18 pm eastern time, 9/11/2007
As most of you know, I have been talking about how the market action has reminded me of similar action in 1987. The market has had several hard drops since this was first brought up, and the first 10% correction in 5 years even occurred. The 1982 to 1987 market acted similar.
Now the market is on the upswing, and if things play out the way our TradeStalker RBI members were told tonight, another sharp drop could occur very soon. Let me state upfront that I am *not* apocalyptic, and I'm not hoping for a stock market crash.
Stock market crashes are once in a generation occurrences (if that).
In any case,I have been getting a lot of questions about this scenario.I thought this "picture" would be interesting:http://www.tradestalker.com/1987.htm
In order to nullify this pattern, we need to see a move over13494 on the Dow cash, the 1496.40 level on the SP500 cash, and 2032 level on the Nasdaq 100 cash that can hold. Unless that occurs soon, the odds of a seasonal sharp selloff remain a good possibility. We will see how things work out. This is NOT a prediction, but just a "heads up" for what is possible over the next 6-8 weeks. Feel free to pass this along to your friends.
Thanks Mike! Friends take the free trial - http://www.tradestalker.com/