Dow at 8,579 … and likely to sink further.
The Dow closed at a new low today, at 8,579.19 or about -7.33% (-678.91 points) from the previous day’s trading.
Taken over the course of the week (don’t stop panicking yet: there is Friday yet to come, as well as seeing how this will affect the already beaten-down Asian markets) that is a market drop of over 14% from Monday’s opening of ~10,136.
It will be interesting and informative to see how low this goes: will we break through the supports of 14 March 2003 of 7,859, or will we retrace further back to the 7,701 seen on 27 September 2002?
The really bad scenario calls for a bottoming out south of 7,640, last seen on 4 September 1998.
That would have been nearly unimaginable a year or two ago, but it could well be within the next month or two, that we could see more than 10 years of (arguably, much of it false) growth destroyed in the course of a month.
We are only a wee 10% of the market away from that, and after watching today’s precipitous drop of nearly 7%, and nearly 10% in the Nikkei on Tuesday… anything is possible.
Sometimes, it’s good to be bearish: I’m just awaiting the signals to back the truck on up to the loading dock of value yet-to-be.
