early Halloween

The market took a hit today as the Dow fell 108 to 9758, the Nasdaq tanked 38 to 1915, and the S&P 500 lost 11 to 1096. The Dow is at the lower end of a declining channel line and RSI is down to 30.7. It could be ready to bounce like it did the previous three times. The $SPX and $COMPQ don't look as oversold. The RSI for the Nasdaq is flat neutral at 50.0.



Here's Band's take, excerpted from his hotline.

Halloween comes early to Wall Street! Stock prices declined again this week, with the headliner Dow Jones Industrial Average closing today at a new low for 2004. Record oil prices are clearly spooking investors.

But is the picture really so haunting? We don’t think so. For one thing, the NASDAQ actually gained a couple of points on the week. Relative strength by the tech-heavy NASDAQ has occurred at several important bottoms in the past two years. We also believe the election uncertainty is starting to lift, which should help the market. We continue to look for a final low very soon, to be followed by good November-December rally.