Securities Research Services

Wednesday, October 15, 2008


The SRS Risk Assessment meter tells us that the downtrend is close to a bounce. However, the sellers are just not letting up here. We recommended in yesterday's report to start looking for long positions. We were early.

Until the sellers let up and we get confirmation via a follow through day - which we have not seen yet - then it is best to stay defensive.

In fact, a plethora of stocks broke lower out of thrust pullback patterns today indicating that more downside may be ahead.

Again, stay defensive. The S&P may have to test $750 before serious buyers step back in. It boggles the mind, but it is what it is.

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