Judging from the pre-market action this morning, one would expect the Dow to be up several hundred points right now. Amazingly, all the major indexes are in the red. It seems that, unlike before, the US Government rushing in to the rescue isn't having the effect it did in months past. Well, it did have an effect – for a few minutes – but not the kind of giant bounce one might normally expect.
So we should open ourselves up to the idea of a continued swoon. In spite of today's choppy action, I still think the likelihood of a big bounce is very real, but as an alternate, keep in mind the large down-sloping trendlines I have drawn below. There is the prospect of the Dow and the S&P continuing to push there way to these levels (Dow about 10,700, and S&P about 1,170).
Update: Soon after I made this post, a reader sent it his own chart, which seems to line up with my own S&P projection.
