Do you remember the stock market crash on October 24th,2008 ? Data shows DJI as low as 9500 and SP500 at 930 during next sell off

On October 3rd, I posted article How to play with this volatile market ? Data shows 1500 up side in DJI, Nasdaq up 300, S&P500 up 131 from its bottom by the end of this quarter

Since then, DJI has bounced back from 10404 on October 4th to October 24th at 11913 which is 1509 point till now. S&P500 has bounced back from 1074  to 1254 which is up 180 point till now.Nasdaq has bounced back from 2298 to 2699 up 401 point. If the stock market rallies this way, we may see 13500 on DJI, on S&P500  to 1450 by next month. Do you think its realistic ?

The technical level to watch on
DJI: on upside is 11896, 12132, while on downside it can fall 500 points 11444, 11383, 10809
S&P500: on upside is 1260, 1286, while on downside it can fall 1200, 1195, 1155.
This time I am seeing downside on DJI as low as 9500 and on S&P as low 930 during next Sell off.

The euro zone's manufacturing PMI fell to 47.3 in October, its lowest level since July 2009 below last month data at 48.8, which shows contraction in manufacturing sector.Today market focused on China PMI and completely European data. Also the market is happy with the new bailout news coming out from Europe. I am still optimistic that there will be big sell off this week.

http://www.freefdawatchlist.com/2011/10/surprised-by-late-rally-get-ready-for.html

There is no harm in taking advantage follow the rally but remember holding stocks overnight is very risky even though Volatility is sitting at 29.26 as of today.


Huge volatility is expected on this dates.Buy VXX ahead of this dates.

October 26th: Decision from Europe on EFSF and Greece bailout.

October 27th: US GDP data

November 23, 2011: Deadline for the Super Committee to draft and vote on legislative language that details its recommendations.