Recap

A potential rally was thwarted in the final 30 minutes as the markets fell apart. Panic selling, margin calls or was this the work of knowledgable sellers who were getting out before the real carnage begins. Black Monday could be in the cards after a brutal week with two 200 hundred point Dow drops and a 300+ drop. While it does pay to be bold in situtations like this , standing infront of a speeding train can be a stupid idea.

Dr. Doom came out today with the belief that US stocks are overvalued with the end of the LBO boom. He may have predicted the 1987 crash or so he claims. Perhaps this time he is a contrarian indicator.

Technically speaking, the Dow has support in the 13250 region and the 12700-800 region. If the latter is violated, it may be time to get out the markets. The S&P is only 10 points away from its 200 day moving average at 1448 which may offer a lot of support and a good opportunity to go long. Then again, if the 200 day fails, a short may be in order. Who says the markets are boring.