The market has opened weak today though the bears have not really taken full control with the bulls still hanging around. If this continues, I think the bulls could come back strong in the final two hours of trading.
A few numbers to look at. 14198 13962 13780 . These are three intermediate tops set on the Dow between early October and now with the latest figure occuring on Tuesday. The lows have been 13407 and 12724 . So we are in fact making lower highs and lower lows over the last 2 months. If 13780 does indeed stay as a high number in the short term, we are likely to see a lower low than 12724 in the coming weeks. I reckon from judging the point difference between the two lows 13407 and 12724, the next low could very well be around 12000. Perhaps even test the February/March lows of 11939.
The S&P 500 tells a similar story with highs being 1576 1552 and 1523 with the corresponding lows being 1489 and 1406.
The Nasdaq has been a different story with its late October high of 2861 breaking its earlier high of 2834. The recent high is 2734 with the low being 2539. The Nasdaq while being the strongest of the indices is also more volatile and could thus see more downside in a downturn.
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