Mark Manning: RealMoney Column

June 30, 2008

By Mark Manning

RealMoney.com Contributer

 Next week could certainly be interesting after the Fed’s decision to stay flat failed to inspire the market and only produced a feeble attempt to rally on Wednesday. The market then sold off hard all day Thursday on very heavy volume. That certainly has taken some of my short-term sentiment indicators to extremes, and the spike low is likely to lead to a short-term bounce next week.

 The selloff pushed the Dow below its March lows that I stated in recent columns was likely to happen. Now it will be important to see if that move produces enough panic to put in an intermediate-term low. If the new low doesn’t hold and the index continues to trade below that level, then the January and March lows are liable to turn into significant resistance levels, and that could indicate another move lower is in the cards.

 

The key to where we’re headed is likely to appear when the market shows its hand next week, as it will certainly attempt to bounce from these levels. The strength of that bounce along with the participation of leading stocks will certainly carry a lot of information.

 

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One Response to “Mark Manning: RealMoney Column”

  1. CLICK Says:

    CLICK…

    Love that info. After reading your blog I now understand “currency trades”. Thank For the great post!…


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