As I talked about on yesterday’s post, we have been in danger of falling below the November lows for a couple of days. Today the Dow Jones did just that. With that in mind, let’s take a quick look at technical analysis and what today’s events may or may not mean.

The Dow was down almost 4% today and 8.8% for in the last 5 trading sessions. Even more alarming, it’s less than one point away from breaking through the November low. The November low is the lowest that the stock market has been in 7 years. We are again at an alarming place in the economy. Why are we back where we were?

Market Volatility is alive and well right now.  I have found yet another example of what I mention on a daily basis:  The market is emotional.  Let’s look at today’s example.  Go to http://finance.google.com/finance and take a look at the chart for the Dow Jones Industrial Average today.  (We will do an entry on what the [...]