Timer Digest Market Commentary
Fari Hamzei
THIS WAS SUBMITTED TO TIMER DIGET AFTER THE CLOSE ON FRIDAY, NOVEMBER 9th, 2007.
We have not observed the type of climatic selling one usually sees at the market bottoms. Volume is picking up each day as we discover new lower lows and volatility is increasing.
My best guess at this juncture is that we need to take out the August lows which correspond to 1370-1380 on SPX Cash Index and 12,500 on DJIA and then reassess the battlefield damage. Along the way, we have November Options X counter-trend move next week and that could create a short-term dead cat bounce. But longer term, the trend remains BEARISH and my outside target remains at about 1300 on SPX Cash Index which roughly corresponds to 12,000 on DJIA.
