Options Wonderland

[yayaa]

Good,12845 is now officially breached,alalysis follows.

Friday saw a nice rally, but because it was on extremely weak holiday volume, we cannot gleam too much from it. Yes we are very due for a multi-week bottom, so yes, this could be the start of the next multi-week rally. We will need to see strong upside follow-through next week to conclude a Santa rally is starting. Meanwhile, we sit in the first Bear Market since 2000 through 2002. We got an official Dow Theory Primary Trend Bear Market Signal on Wednesday, November 21st, 2007, the day before Thanksgiving. Amazing. This is the first Dow Theory Primary Trend Bear Market Signal since September 23rd, 1999.



But back then, the true impact of the Bear Market signal was not felt until several months later. In fact, from September 23rd, 1999's close at 10,318.59, the Dow Industrials rose 1,404.39 points over the next three and a half months to an all-time high of 11,722.98 on January 14th, 2000. It was then that the Bear market in stocks began, four months after the Dow Theory Primary Trend Bear Market signal. What followed was a two and three/quarter year Bear market that saw the Industrials plunge a Fibonacci 38 percent, to 7,181.47 on October 10th, 2002.



Since we got a phi mate turn date top on October 9th, 2007, the Dow Industrials have fallen 1,378.50 points, or 9.73 percent. Since we got the first of our latest 9 observation Hindenburg Omen, the Dow Industrials have fallen 1,126.90 points, or 8.09 percent.