While one support level after the other of the major US stock market indices is being breached, I have just come across a CNBC interview with top-ranked Louise Yamada of Technical Research Advisors. Louise’s track record is just too good to be ignored, especially when she mentions possible targets of 4,000 and 400 on the Dow Jones Industrial Average and the S&P 500 Index respectively. She concludes: “We would not venture into the waters … like trying to catch a falling sword”.
My belief is that if stocks are unsuccessful in rallying off the current massively oversold levels, any notion of the markets simply undercutting the previous lows before bottoming out is off the table and the outlook takes on a distinctly appaling color.
Please click on the image below to view the video clip.
Source: CNBC,March 2, 2009 (hat tip: The Technical Take).
For those interested in what Louise said in July 2008, click here for a top-class interview with Kate Welling.
