Update by Barbara....Scenarios

Frank Barbera/ 10/12 update

"In our last update dated October 1st, we told subscribers that the stock market was in an extremely unstable condition. We stated, “As shown in the chart below, prices are presently well outside the lower band. This type of condition is a sign of serious instability and often leads to downside acceleration. At this point, were stock prices to break to new lows from here, we would not be the least bit surprised to see the decline intensify with price declines carrying the S&P toward 900.” When we wrote those words, the S&P 500 was trading at 1127.27 and the DJIA trading at a value of 10,831.07. Since then, the S&P has nose-dived a heart stopping -228.05 index points or -20.23% in just seven days. For the DJIA, the decline has totaled a stunning decline of 2,380 index points or 21.97% with the DJIA closing Friday at 8,451.19. On Friday, the S&P closed at a reading of 899.22 --- reaching below 900 on the close for the first time since April 25th 2003 – over five years ago!