INDEX UPDATE
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Earlier this morning the S&P Futures were down 15, but now down 10. The selling will start this morning, but I feel that there will be several attempts over the next few days to hold the market up or even push it up some. For the BEARS, dont be surprised if the sell-off is not immediate.
Just on a technical basis, it is common for a few days of DOJI's/ SPINNING TOPs or combinations of a solid BLACK DAY with DOJIs/SPINNING TOPs, before the stronger selloff. For example, today could possibly be a strong down day but tomorrow a DOJI/SPINNING TOP,whereby the BULLs may consider that strength.
As I have previously indicated, the 3rd day off the TOP is commonly a strong down day, so I feel that if the heavy selling does not start today or tomorrow, it should start on Friday and continue into the early part of next week(MON/TUE/WED).
Please keep in mind the RISING WEDGE which has the LOWER TRENDLINE around 7950-8000 for today and tomorrow. A significant drop below such trendline will confirm that the downtrend will continue, and could possibly go much lower to test 7700 then 7500-7400 supports.
The DOW closed at 8080, so it is not far from the LOWER TRENDLINE of the RISING WEDGE.
The JAPAN market dumped hard last night, and set another 12 year low. It can go lower and as of this time there is no sign of setting a bottom yet. The major EUROPEAN markets are in clear downtrends setting LOWER LOWS/LOWER HIGHS. Such will not help our markets.
For the DOW THEORISTs, it was just mentioned that DLJ downgraded some of the airlines and had some negative comments for that sector. Such will not help the DOW TRANSPORTS.
Seeya |
