I am seeing the futures down solidly and NDX hit by more than 80 points, we are approaching 1442 support.
Selling in Europe is non-specific late yesterday lot of long positions were booked and they need to rattle these new entrants, for me if we see 1439-43 area and we hold it I will be looking at the opposite trade, I would assume that NDX 3670 will hold making today first hour a higher low on NDX, my trade today is tp play 1442 support, I would give and take 5 points from this support and will closely watch NDX and Comp if NDX 3660 is taken out I will wait for dust to settle before I go for that opposite trade.
After a good run I would suggest present fall a nice healthy fall for the market if we hold here that would be very important for the market future prognosis, bond yields climbing towards 6.75% and SPH 1442 are important levels, even we can see a single break but overall this test today is test of weak holders resolve many will be washed out but fundamentally I don't see a change in sentiment, higher voltality are higher profits, between 1448 to 1438 one can short but not betwe 1438 and 1435, rahter an oppositie trade at that level. DAX is down 8% from its yesterday high and that is good, so is FTSE 5% and CAC 6% from its high.. I don't see $ strength is goign to help the sellers too much. The European selling will soon dry as futures turn course after some running of supports, I would assume we can be sure that 1442 hit will help ring asl ow as 1438.. as they will like to run few stops.. if we close below 1442 today and next session we will see a reversal sign and that will open door to 11100 and as low as if that is tkaen out 10500.. the band of consolidation in my opinion is 1442 and 1530.. that is what I consider so far, in between we can break the support hit lower areas but with trend intact.. For trend to break we need NDX 3500 to be taken out, as NDX can perfectly test 3500 and still be in uptrend, so you need to trade with these prarmeters in mind today/// |
