Stock Market Student

The DJIA broke 10,000 on the down side this morning and it remains to be seen whether this is the beginning of the end or the end of the beginning.   The index is hesitating around 9,950 (at noon).  Any real bad news could send the markets plummeting.  Or maybe this is one big manipulation by the big traders, driving the markets down to support levels and scaring away the little guys.  Great if you believe in conspiracy theories.

My gut feel says this is the beginning of the end ... and I have a pretty big gut.  At least my wife says so.

UPDATE:

I remember Larry Williams once say that traders always expect the big crash to happen and it never does.  (Well that's not completely true:  2007-2009 is a good example).  However, fear does play a big part in the stock markets.  So below is my reading of how the DJIA chart looks (5 year chart):

We are at a fairly significant cross-road as you can see by the red lines.  It is quite likely that fear will subside and the DJIA will rebound off the support level.  Or not.

Steve

So the Dow Jones Industrial Average is rubbing noses with an important psychological support level 10,000.  There are a lot of "experts" calling for the stock markets to nose-dive either now or later this year.  Will this happen?  Who knows?

(Chart complements of yahoo.com).

If the DJIA does break below 10,000 in a significant fashion then fasten your seat belts because the markets could get pretty ugly.  There is a lot of bad news hiding around the corner - commercial real estate, deteriorating economy, rising country debt levels.  The best thing may be to hide one's money under the mattress, at least until they foreclose on the house.

UPDATE:

WOW!  The DJIA closed at 10,002.18.  Tomorrow will be very interesting.  The markets will either go up, or down.  (The most intelligent thing I have written all year).

"There are only 10 types of people in the world: those who understand binary and those who don't."