Originally Posted by
DAL4EVER
As a result, most are predicting that if the turnaround does begin at the end of this year to beginning of next, the market would historically be reaching its bottom. Also, you generally retest the previous lows which we have done this past week.
We didn't just "retest" the lows, we broke through them and continued down. The support level at Dow 7300 from 12 years ago was shattered now that we're down to 6700 on the Dow. Same with the S&P, except we broke the "psychologically important" 700 level on the S&P.
I can't speak as to whether the huge negative sentiment is part of the bottom building process, just that ENORMOUS technical damage has been done to the charts in the last week. Wouldn't be at all surprised to see a significant continued drop before any kind of bottoming formation.
Yikes...
Carl