Finally, I would look for a lot of volatility from here on out until a bottom is reached in stocks. Today was the first real test of 10.725 and I said it would happen even though most were convinced the July lows were the lows. Well, here’s a news flash: today’s lows were not the lows either. We have at the very least one thousand points to go, and maybe as much as two thousand points to drop. Even the Point & Figure chart for the Dow has the index dropping another seven hundred points:

I will even go so far as to say that we’ll fall so hard during a session, that they’ll suspend trade. Fear has entered the market place, but only has one foot in the door. Just wait…

ebo@dtanalysis.com
Dow Theory Analysis SAC
Sept. 16, 2008