This Is Not Good

**tsptalk** · 07-06-2004, 03:42 PM

I am hating this breakdown. The S&P 500has fallen below support levels and it wouldn't surprise me to see 1100 before long. This is not good. I hope it is a temporary reaction to earnings warnings and the Kerry/Edwards ticket announcement. It may be worth pulling out if we get a bounce only because of the technical breakdown. I still like the marketgoing forward six months, but the short term could bring more carnage.

No action today.

Tom

**tsptalk** · 07-06-2004, 08:12 PM

I just noticed the site had been down. I'm not sure how long it was down but I apologize, and it seems to be working now.

Today was ugly. I can see the S&P 500 dipping to 1100 or just under but we could also get a snap back rally which makes it tough to jump out and in with our deadline restrictions. So I am stuck right now having to wait out this pullback. I'm not too happy about it but I'm also not too worried about the market.

If it makes you uncomfortable to be in stocks, you can certainly pull out. You will keep any losses to a minimum that way but you also risk missing a capitulation-like reversal.

**Rolo** · 07-06-2004, 08:38 PM

You may be right, T, we may bounce off the pictured trendline, eh?

Did you get my e-mail about the site? I guessed at an address. I'm glad you recovered...I didn't know what I was going to do at work all afternoon!

**tsptalk** · 07-06-2004, 10:42 PM

Welcome back Rolo. I hadn't even considered thattrendline. I was looking the 200 day moving average. So that is more reason to believe we may give 1100 a test. Oh well, we'll live.

Thanks,
Tom

**tsptalk** · 07-06-2004, 10:46 PM

Just in case you have concerns about the economy...

http://apnews.myway.com/article/20040706/D83LFTV00.html

If Iwas a longer term trader, and I wasn't fully invested, I would use this pullback as a buying opportunity.

**Rolo** · 07-07-2004, 12:05 AM

Ya! At least a higher low looks promising.

**fuzzduzz** · 07-07-2004, 12:17 AM

Are you sure the low is in???

**tsptalk** · 07-07-2004, 01:38 AM

I'll say 90% sure. :shock:

**Rod** · 07-07-2004, 08:49 AM

Just ride it out folks... what goes DOWN must come UP!!!

**Rolo** · 07-07-2004, 04:26 PM

Agreed...90% sure the market will follow the trendline, bouncing off of it like it did earlier and resuming its new uptrend. 10% chance at worst that it will collapse below it. The market appears to be struggling, yet still advancing, hence my reluctance to make bearish plays.

However, my reluctance has cost me in the past and several intimate friends have told me that I "think too much".