17 September 2008

Charts In the Babson Style At Midweek 17 September 2008


The equity markets are very short term oversold.

VIX is sky high. This Friday is the quad witching expiration for options. The McClellan Oscillator is in crash or rebound territory.

Stocks could breakdown and plunge, but its more likely we will get some sort of bounce and consolidation, that could last until the weekend or the next major financial default. We *might* see a major relief rally ahead of expiration.