Fear still in play with the 7th straight down day

10/9/08

It is another sad day today. Fear is still growing bigger. Dow closed at 8579 and has already below the Fib 76.4% level. On a biggest scale, it has chance that Dow will drop down to the 7200. In fact, this chance is getting higher. As I write this, Japan Nikki has already open down 11%. Sell-off tsunami is playing on. It is irrational and no one has any confidence at all. I noticed market keep behave opposite as Libor rate. If libor rate get stable or revise down, the market would hold and may have recovery rally. If libor rate keep going higher, market will tank. There is no meaning to give any support level technically since the market is breaking each support that I see so far. But, as a chartist/technical analysis/market strategist, next support is 8500, 8300, 8000, and 7200 ( bottom of 02 lows). However, do not rule out it could drop below 7200. Let wish the G7 nations meeting will come up some form of rescue the whole world.