INDEX UPDATE
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JAPAN closed down 2% and HK closed down 4%. Early in the morning the S&P FUTURES were down about 17, but now only down 5%. Germany was down earlier but now up 3%, and BRITAIN/FRANCE up slightly.
If you recall, Europe, especially Germany, was down big at the end of the week and they are due for a technical bounce, but this bounce may only be short-lived. Europe is short-term oversold.
When Europe closed down big on Friday, our market closed up 260 DOW points above the intraday low.
The futures really volitile now. Since I started typing it was down only 5, now its down 13.
Per my SHORT-TERM TECHNICAL - Fridays close put all of the major international markets in the oversold range and many are CLASS BUYs, except for our market which is in the lower mid-range(reading of 25-30) in light of the 260 point runup on Friday. Therefore I am expecting some sort of bounce this week in the international markets.
In light of the futures being down 13, sure a big sell off could start now, but per my technicals it is more likely to start in the time frame of OCT 7-13 and continue into the week of OCT 19. It is during this period that the probability of breaking 7400 should occur.
Now that Im finished with the post the futures is down 9. Its moving fast. Could imply intraday volitility, but am leaning towards the position that today should NOT be a huge decline(100-150+ down).
seeya |
