INDEX UPDATE
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The S&P futures are down 15.50 right now, so it is quite obvious that we will have a sell off at the open.
It is possible that we could see negative 200 or more intraday, and if such happens would it be a buying opportunity after dropping big as it has been recently? If we recall we had a 280 point drop recently and rebounded 200 points intraday.
From my mathematical calculations, my short-term technicals would not get to the oversold region unless it dropped over 250 points and would not become a CLASS SELL until it dropped 350-400 points - these calculations are only for today. This implies that this could be the cycle that a break of 8300 could occur, inlight of the large potential downside. If the DOW does drop 200+ points, I am not expecting a huge rebound as we did the last time. If we close off our lows, but not substantially higher, tomorrow should be another down day, at least at the open. I feel comfortable holding my PUTS till tomorrow, unless we rebound completely off of the intraday lows, which is less probable this time.
Lets say that we do break 8300 by tomorrow - I feel that the support at 8200 or 8050 will hold(most likely 8200), and we should have a small rebound early next week (MON/TUE/WED), then WED/THUR we should see selling resume again, and it should intensify where we could break 8000.
If we dont break 8300, then the rebound could be very strong and fast and we could see the highs of 8850. As long as we do not break 9041 to the upside selling should probably resume again in a similar timeframe of next THUR/FRI(a day later than the other senerio)
Seeya |
