Excerpt from an on line trading newsletter: On Friday only 6% of the components in the Nasdaq 100 (NDX) closed above their respective 10-day average, and only 10% closed above their 50-day. That's a special kind of washout, and it's been rare to see over the past decade. In the nine times this decade we’ve seen such washouts, the NDX was higher three months later, and by an average of over 30%.

My opinion: It's almost a psychological phenomenon... over and over again, I'm seeing these email letters saying the QQQQ has hit a new low and will bounce back. This one is really funny because all of the examples come from the secular bull market. How about saying every day during 2001 to early 2003 when the NASDAQ was hitting new lows, we certainly didn't see the market 30% higher within a few months. This is really dangerous thinking. But if people read enough of it, they'll think its true – simply because the experts said so.