Discussion in 'Trading' started by Xuanxue, Jul 29, 2008.

  1. Xuanxue


    ES had a 1:1 retrace at .618% from 1200 and now presently a 50% from 1291. It's probable we'll gap up to 1269.75 in the overnight session and if so I expect to see the gap sold into pre-market. Then again the broken bull trendline from the ABC correction doesn't seem to be fairing well.

    Under normal market conditions we could expect to see a consolidating period, but I anticipate another convicted day tomorrow en route to new lows for the year.

    Consumer confidence may indeed be strengthening on news of lower demand for light sweet crude, strong retail sales, strengthening dollar and financials offering sweet deals to potential investors to attract fresh money.

    However, the International Monetary Fund has claimed the mortgage crisis in the U.S. has spiraled out of control affecting international markets. They estimate the crisis has cost 550 billion, which has slowed growth by 1% from this time last year and forecasts the turmoil to last through the second quarter of next fiscal year, costing another 500 billion before seeing sustained, international growth.

    I expect the deluded euphoria to dissipate by the opening bell in the morning, and I anticipate yet another huge sell off.