Wednesday, October 8, 2008

Today's Markets

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A look at the chart reveals a very bearish chart.

-- Prices are below all the SMAs

-- The shorter SMAs are below the longer SMAs

-- All the SMAs are moving lower

BUT, also note

-- Today was a high volume day, with a

-- The candle is an upside down hammer

However, by all technical indicators the market is extremely oversold right now.

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The MACD is the lowest its been in three months, as is

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The relative strength index.

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Stochastics are also scraping the bottom.

In other words, don't be surprised to see a relief rally over the next few days.