Well I guess I will be a parrot again…. Another wild day on Wall Street. We had a hammer type  candle type ccandle put in today on the Dow. This does bode well for tomorrow and prices would tend to reverse direction based upon this bullish candle formation. We closed just below the 0% retracement level again and can not seem to get any traction to the upside. Visit my swing trading subscription page for daytrading the DIA.

The momentum oscillators are still heading to the downside but have are bottoming to neutral today.

 The moving averages are still poining down and that would suggest that there is more downside action to be had.

There were several huge moves today; however, the most talked about will be those in the Dow.  At one point the Dow Industrials were down over -800 points, but late in the day managed to stage a massive rally of 500 points before it closed down just -369.88.  At the low, it was the largest point drop in history.  The early sell off was due to a global equity route last night, while the late rally was due to a rumor - there might be an emergency G-8 meeting to schedule a coordinated global interest rate cut.

Investors are right on the edge, said Hugh Johnson, chairman of Johnson Illington Advisors. For a while it was denial, then it turned to anxiety, and now it’s closer to fear, he said. I wouldn’t call it panic, but there is some evidence of the beginning of a race to the exits.

Please take advantage of the FREE Morning Call where Uncle Mike discusses Dow and & subscribe to my Swing Trading Subscription The Mechanical Monkey where we discuss our mechanical trades in ETF’s, E-Minis, NASDAQ & Solar and Alternative Energy issues.

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Uncle Mike

PS Check out our “Trade As A Business” course ( www.teachtalktrade.com/business_plan1.html ) as we will be starting a new course in the comming weeks. Email um@teachtalktrade.com for information.