Below are charts of the S&P 500 and the Nasdaq 100 Index. The opening ranges are marked on both charts. The size of this range is used to estimate the size of the market moves for the 2008 calendar year. Since both markets are below the opening range, only the downside targets are listed. Just because the market reaches one of these levels does not mean it is time to step up to the plate and buy. The market should hit one of these levels and then test it, breaking below, and then trade above it showing that it is a support level. This often happens over multiple trading days. Do not try to pick a bottom based on these levels. The use of options can be a safe way to enter the market, but remember; its not the first mouse that gets the cheese.
S&P 500 Index (click to enlarge)
Level 1 Down = 1350.61
Level 2 Down = 1290.63
Level 3 Down = 1229.45
Level 4 Down = 1168.57
NDX Nasdaq 100 Index(click to enlarge)
Level 1 Down = 1831.82
Level 2 Down = 1700.62
Level 3 Down = 1569.42
Level 4 Down = 1438.22
There is a review of this concept under an earlier post that can be read HERE.