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ajtj99

10/10/08 9:23 AM

#45836 RE: opnion #45832

Well, the 1929 crash pattern would have us hit about 815 SPX today, close at about 850, then move up to back-test 960 on Mon/Tues.

The big problem with that is the Friday/Monday effect, where a drop on Friday tends to carry through on Monday.

If we don't get a drop to 815 today on the SPX, maybe it will come Monday.

Of course, we have support at 768-786 on the SPX, and 800 is a fib extension off the 1440 SPX highs.

If 7198 Dow falls, there's really not a whole lot between that support and say 440-480 SPX. I would have thought this unfathomable just a week ago, but this drop could be the equivalent of a 100-year flood.