Buy the Rumor Sell the Fact » Market bottom? http://www.buytherumorsellthefact.com Just another WordPress weblog Thu, 02 Feb 2012 04:09:33 +0000 en hourly 1 http://wordpress.org/?v=3.0.5 New low http://www.buytherumorsellthefact.com/2008/10/24/new-low/ http://www.buytherumorsellthefact.com/2008/10/24/new-low/#comments Fri, 24 Oct 2008 23:00:51 +0000 Dan Collins http://buytherumorsellthefact.com/2008/10/24/new-low/ Both the Dow Jones Industrial Average and S&P 500 dropped significantly on Friday settling below the multi-year low close from Oct. 10. The low close in the Dow, 8,378.95, goes back to April 2003 and the close in the S&P,866, goes back to March of 2003. Despite intraday losses each of the last two days, both indexes managed to stage strong end-of day rallies to settle above the Oct. 10 low close.


Many analysts had pegged the Oct.10 sell-off as a possible long-term market bottom and the furious rallies in the last 20 minutes of trading Wednesday and Thursday taking both indexes above the Oct. 10 closing prices (891 in the S&P and 8,451 in the Dow) confirmed this as an important technical level.

Ever since the subprime mortgage and resultant credit crisis hit more than a year ago, market analysts have been trying to declare that the worst is over and a bottom is in. But it took us quite a long time to get in this mess and it will probably take just as long to get out.

It would be wise to question anyone declaring a market low.

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