Dow Jones Industrial Average 3Day Candlestick Chart w/Linear Regression (click to enlarge)
Dow Jones Industrial Average 3Day 1929-1930 (click to enlarge)
Dow Jones Industrial Average 3Day 1929-1933 (click to enlarge)
Picking bottoms is a losing game, there is a lot of talk of 800 on the S&P 500 as being support, but that is just a number and not a significant number mathematically. In the chart above showing the DOW-30 in 1930, there looked to be a bottom, but it was a false bottom. No matter what the government solutions and ideas that come in the coming weeks and days, it is going to time to build a base and most likely lower lows are ahead. With lower lows in equities, will come higher trades in bonds, which mean lower rates...this is what the government wants. Higher Bonds and Higher Equities is not in the cards at this time, one is going to win....Bonds first, then equities down the road.
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