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Getting closer and closer now,
S&P/ASX FUTURES: Pointing 94 points/1.78% lower to 5176.
I wouldn't be surprised if we went to 5100, or 5050 and then break that by the end of the week.
After all we must suck up to the mighty US Dow Jones Industrial Average as much as possible, seeing as they broke 12,000 its only FAIR that we break 5000!
It's funny, the closer the $A and the $US get, the more it symbolises our values; pretty much the same except for gun laws.
ha ha, good one!
However, not entirely true!
Fundamentally IN AUSTRALIA that is true, but in the US, it has well and truly spilled over into the retail sector (which is of paramount importance).
This could, or could not, to a large extent affect China/India/Europe and hence Australia.
Only time will tell.
Could today be the bottom?Right now this volitility has me watching and waiting. Not holding anything
If we break through this 5400 area we may just see 4800.
Just being a pessimist.
Could today be the bottom?
I'm wanting to believe it is, so this 50% theory stands up!
But, this chart borrowed from another post suggests we are nowhere near the bottom, and suggests we are in the fear stage ...
Looking at the 50% ranges it has a very good chance.
These 50% levels act as important support or resistance levels.
For example - In 1929 the Dow Jones made a high at 386 and crashed to 195 or 50% before rallying to 297. What is so important about 297? This level is also 50% between the high of 386 and the low 297.
In 1987 the All Ordinaries index culminated at 2306 before crashing to 50% or 1151. It then rallied to 50% between the high and low and made top at 1785.
In this current phase of market activity the major low pivot point is 2666 and the major high pivot point is 6873. I doubt the All Ords will decline to 50% of 6873 or 3436 because there has not been 60 years since 1987. 60 years is the approximate time between the last three major crashes. However, it's highly likely the index will see 50% between the major range and find support near 50% or the half way point between 6872 and 2666 being 4769. That means the index has another 1000 to go. We shall see??
Check out the weekly All Ords chart declined to 5221 and rallied only to hit its head at precisely 50%between 6873 and 5221 or 6047. The market made a top at 6057 suggesting the first phase of this down trend is complete
Not to sure about how the 50% rule/whatever is supposed to pan out, but today could definately be the bottom, just like any other day.
We're at a good on the chart to see a bottom. I hopeing it is the end of the plummeting bear, It's been a while and I've been out of the market for sometime.
When we do reach the real bottom...I don't think anyone can confidently call it. We won't know until after the fact.
The All Ords finished today at 4769. Who are you - Nostradamus?
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