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Grizzly's Growlings Current Report


Market Update Tuesday 04/04/2000 5:00 pm
The Mini-Crash!

WOW what a day!

In yesterday's monthly report, we stated:

"The Elliott Wave patterns suggest further selling ahead in the NASDAQ Comp over at least the next few days." 

Little did we expect the additional selling to take place in less than one trading day! 

The NASDAQ jumped head-first into the abyss and hit bottom at 3650 at about 1:00 pm EDT before the "buy the dippers" marched in to save the day. After being down over 574 points (13.5%), the NASDAQ Comp closed down "only" 74.79 points, a loss of "only" 1.77%.  For comparative purposes, the NASDAQ Comp lost 11.3% in the infamous October 19, 1987 crash.

So, what's ahead? More margin calls and panic selling are likely to rattle the markets the rest of this week, keeping the pressure on and putting a damper on any short-term rallies. 

The rally in the last three hours of trading today appears to be a classic small three-wave countertrend bounce, at least so far. The rally may carry another few hours, a few days, or possibly a few weeks further, but when it's done, look out beloooooooow. The stage is being set for THE BIG ONE, the Wave 3 crash that should take the major indices down 25-40% further from here.

US STOCKS REMAIN ON FULL CRASH ALERT!

See yesterday's Monday Morning Market Musings 04/03/2000
  

grizzly@bearmarketcentral.com
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