Hogan Bottom 2/12/09 February 12, 2009

Today, 2/12/09, the Dow Jones is testing the Hogan Bottom at 7773.81 and it has held. The Dow Jones just hit 7774.98 and is now trying to bounce.

Why is the stock market going down today?

We are basically testing the lower end of the recent range due to the uncertainty on the banking plan by Timothy Geithner. On Tuesday, we fell 381 on the Dow Jones and the overall stock markets crashed because of the banking plan failure. Until we get some clarity of an actual plan instead of stated goals which we already know about, stocks are vulnerable. I don't expect this for weeks!

As I write this, the Hogan Bottom has been violated. If we close below the Hogan Bottom, the next support level is 7500. The Nasdaq is holding up well, over 1500 , but we all know this can change fast!

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