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Tuesday, October 6, 2009

1 year ago

On October 6th, 2008, the market was just entering its "third of a third" breakdown point and 100 point SPX daily swings started to become common. On October 6th, 2008 the market opened at 1097.56 (gapped down from the previous Friday close of 1099.23). It quickly lost support and all hell broke loose as it tumbled down to 1007.97 intraday and bounced and closed at 1056.89.

One year later on Oct 6th, 2009 the market closed at 1054.72. Two points difference.

The next day, October 7th, 2008, the market opened flat and tumbled and closed at the 996.23. Three days later on October 10th, panic spiked for P1 (VIX reading was 89) and the market bottomed at 839.8 intraday. It then rallied for 2 days to 1044.31 intraday high.

As you can see, the market should, barring a massive collapse, start to set a myriad of 52 week highs in both indexes and stocks over the next few days. Indeed the 52 week chart I showed a while back has finally come to life.

By the way the DOW closed at 9955 on Oct 6th 2008. Today closed at 9731.

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