Monday, August 6, 2007

Early Bottom Call

I'm calling a bottom here, with the NASDAQ having just hit 2492 and the SPX at 1427. I am notorious for calling bottoms early, but, then again, it's no fun calling them late.

Also, I have limited connectivity right now, so I won't get into the details of my thinking, but start with a VIX and ISEE that are about as extended as they get, then fill in the blanks in the bullish contrarian picture from there.

Of course, the big question should be whether this is just a delayed mini-bounce that I expect or a pullback bottom from the most recent tops. I'm going with a bottom -- though I wouldn't be surprised to see it retested.

5 comments:

nodoodahs said...

Not as early as my bottom call. Oh, bother.

Anonymous said...

Good call. So is this journeys end for the bears ? Or some side ways higher action and then a retest ?

Rich Strehl said...

I like it. I almost agree but what I don't like is the chart of the SPX. We really blew support out of the water here. I won't hinge my opinion on just this one chart though. I want to decide after the FOMC meeting tomorrow. I hope you're right.

Trading Goddess said...

I like bottoms.

:)

moo said...

Nice call! You called it perfectly!

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