20081007

The WIG Index did lower low, which is another sell signal:



More important - market crossed 2006's low (34700) with quite big momentum:



I believe technical traders felt fear today. This session showed us that all the supports in bear market are just potential supports. Next price action level is ca.31300 (low from October, 2005).

The WIG Index also crossed the Fibo 61.8% (34100), but eventually closed at it. Fibonacci level of 61.8% is important. Drop more than 61.8% is usually considered as the first sign of weakness in the prevailing trend (article here). That's the theory, let's see what the market does next.

The US closed on red (S&P500 below 1k (here), watch interesting video from FibonacciQueen), that probably will give us direction for tomorrow (Brian's video here).

If you don't have enough of catastrophic news, watch this one (second half), from Investing and Trading blog.

Sources:
[http://www.projectstreamer.com/users/cb1618/oct8/oct8.html]
[http://www.fibonacciqueen.com]
[http://investorandtrader.blogspot.com/2008/10/bank-of-america-bac-cuts-its-dividend.html]
[http://www.marketwatch.com/news/story/us-stocks-fall-sharply-fifth/story.aspx?guid={3DF34375-50AA-4862-BDF0-C6804080AEA3}]
[http://www.aboutcurrency.com/content/view/506/489/]