It appears that this is the one-two punch that we hoped would not occur.
With no significant support level in sight, I am not sure how long this free fall will continue. One thing is certain, the markets are oversold and there may not be too many sellers left holding securities. Simply put, an oversold market could be recognized when 80% or more of the stocks have dramatically fallen below their 200 day moving average.
Thursday's rout left us numb, Friday's see-saw behavior eliminated those who placed "stop loss" orders and today's trounce could have weeded-out many of the willing and unwilling sellers remaining. Meanwhile, a serious blow has been inflicted to our markets.
Questions remain:
Are we near the next bottom?
Have we seen the worst of it?
After the dust settles, the few left standing will get to fight another day.
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