World Market Sale Off

What happened to the market? How come the selling was massive? Apparently, according to Don Fishback, there is a rumour that this is due to the margin call that was issued by Goldman Sachs and possibly Morgan Stanley on 2 & 3 Oct on the hedge funds. According to him, a lot of calls will be due on 13 Oct.

Let's look at the world market:

World	Longterm	Midterm	Shorterm
S&P500	Down	Down	Down
DJI	Down	Down	Down
NasdaqComp	Down	Down	Down
Nikkei 225	Down	Down	Down
Kospi	Down	Down	Down
SSECI	Down	Down	Down (-)
HSI	Down	Down	Down
TWII	Down	Down	Down
STI	Down	Down	Down
SENSEX	Down	Down	Down
FTSE	Down	Down	Down
DAX	Down	Down	Down

Panic selling around the globe. So, the question that comes into our mind now is: Is Friday low represents the bottom?

First thing I want to see is a technical rebound. The chart has gone into overwhelmingly oversold position. Maybe everyone will calm down now. Both US S&P 500 and DJI charts have given a glimmer of hope with a long shadow candle. We may have a bounce next week. How long will it last? Until the next window dressing period (Dec 08)? Monday will give us the first clue on what the market will do.