Was That a Test?
6th September 2008
Friday’s stock markets tested the July lows, providing us with a daily hammer that could be an early indicator that the worst could be over. We will need confirmation from an up day on Monday, but considering the oversold nature of the market we are in position to at least bounce from this position. The problem is that the weekly charts do not look good, so it could easily just be a bear market rally. We will continue to watch the markets closely this week to see if the markets can make some kind of decision, or if we are still playing a waiting game.
JD