A Crash Of HayDor Proportions!

Mr Rake and Mr Zedor would sure be in Bear Heaven! Unfortunately they were bearish a few years too early and likely missed out on most of the fun. This bear move looks to be on its capitulative phase. VIX near 50 and a high P/C warrants caution on the short side. The August 2006 lows failed to hold on the Nasdaq, so we're now at 1980 support. If it too fails, the 2005 lows (Nasdaq 1890) is the next level of support. The best bullish case is a gap down followed by a reversal and close near the highs for a nice IT recovery rally. (at this point, 2362 is the most optimistic rally target). Z

I hept saying here in prior posts we needed to get a Vix above 40 and likely near 50 before we could even THINK about some sort of bottom. Well we are getting there, much to many folk's surprise. Keep your powder dry.