REVISED the Outlook, as the 5% drop last night changed the entire forecast....
This is the worst Ghost month in this Decade. Cutting of 10% in just 1 week time, without any Major reason, all are based on Fear and consumer sentiments. All people are optimistic, but Jobs, Bonds, Bailouts are popping out and asking for help.
What went WRONG in the DOW JOnes was the major 500 pt crash that had happened, if it was only a 200pt drop to the 12000 level, we are still 100% in a bull market.
Now that it dropped off to 12000,11700 and 11500 critical supports, I am one of the bearish people now thinking how to defend this market. 50% bullish, 50% bearish.(50% chance of going into recession/double dip as well).
I actually did not expect this to happen, the downgrade of U.S. Sovereign debt should have had only 200pt decline, it did a whooping 500pt decline that made a Breakdown of markets, making Medium term and short term Bearish and downtrend.
I have made charts below to illustrate the Medium Term bearishness of the markets, but is still hopeful for the Long Term uptrend lines I made below. Overall, RSI around 20s, few months/years from now, if Defaults/Bailouts will soon arrive, A decline to 10,000 level is not impossible.
Forecast: Possible support at 10500-10800, a Whooping 15 RSI (10yr low) then a 4-8% rally before a possible downturn swing happens. Bull Market in U.S. Still possible, but last night, Europe's technical charts confirmed they are in Recession and in extreme Bear Market.
PSE
HongKong
Australia - Broke down, possible 3700-3900 support
Germany (BROKE DOWN) - confirmed breakdown with 5300-5500 possible support
London (BROKE DOWN) - confirmed Bear Market at possible 4800 Support
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