Indexes sharply lower

Stock indexes were sharply lower today, with the S&P and Dow losing better than 2%, while the Nasdaq was down a little less. Volume picked up a little on the S&P and declined slightly on the Nasdaq. All trends and momentum remain down. I tried to find something nice to say about the market yesterday, as it looked like some of the indexes could be in a blow-off move, and there was some symmetry in the length of the impulses, which could be indicating a cycle low, at least enough for a dead cat bounce (for those who believe in cycles). All that remains even with the action today. But with trends and momentum down, there is no reason to look at the long side to try to catch a falling knife. Better to wait for some technical evidence, which there is none at the moment. I put the bear back in the corner, as the back and forth, or eight second ride, character of the market seems to have been resolved to somewhat smoother price action. There was some minor support in the Dow from early March of 2007 that is being tested. The same support on the S&P was tested in mid-August, and reversed the market back up, but on the S&P that support broke today like a hot knife through butter. The Nasdaq is still hold well above its similar point from early March, but accepting prices into the tail left on August 16th, which looks quite bearish to me.
Gold was lower. Looks like the dollar is benefiting a little from the down move in stocks, with trends flat but turning up, and momentum is moving higher. The lower stock market should insure lower interest rates that should insure a lower dollar. But maybe the dollar has discounted that already and anticipating other countries lowering rates at a faster clip. The Baltic index was at $6472, down over another $400 from yesterday. BIDU got hit hard today, closing around 265, and down from almost 430 a couple months ago. I remember one analyst after another coming on CNBC urging people to buy at those high price because it was going straight up to 600. Similar analysts are now saying the same thing about gold and grains. No charts today as there isn’t much new information to be gained, just a continuation of the trends.

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