INDEX UPDATE
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The CLASS SELL initiated by my system for the Asian Market is continuing since most of Asia is down.
Europe is down hard now, and the media is using Clinton as a major reason.
Right now the futures are down 15, and the fair cash value is around 4.75, according to CNBC, so the futures are down near 20 at this time.
As previously stated the next support lines are at 7650, then 7500, then 7400.
A break of 7650 today or tomorrow, would be quite bad for the market in light of the speed of the decline. In reverse, the same could also have been said for the 380 point run-up on Monday, but it did not hold at all.
A break of 7500 would imply a break of 7400, or course requiring confirmation, since it would produce a LOWER LOW.
Per my earlier notes, this dowswing could last 4-6 days and at this time I am targeting the bottom to arrive Sept 16 (WED). Since my short-term technicals closed at 75 per yesterdays lows, it implies that the downside potential is large and the market could easily set new lows (breaking 7500 and 7400) during this immediate down cycle.
The key right now is to watch for a break of 7500 over the next few days, since that would be a pre-warning of a break of 7400 which in-turn would imply much lower lows.
Just a side note, on a statistical basis, the 3rd day after a CLASS SELL or CLASS BUY goes off, normally is the day for a stronger movement. For this specific downswing it is implying that tomorrow could be worse than yesterday and/or today.
Seeya |
