So far the sell off has been very orderly. However, Futures point to a 300 plus down open. Rumors of Greek Default imminent. Us Economy truly in a Depression. EU major bank Society General on the insolvent watch. We could final get some Panic Selling to bring the INDU to test 911 lows and possibly break them before end of the year. Such a move could be what the Markets need to find an true bottom and not some smoke and mirror support.
So the market would gap down and make a new low if we were gonna rally from here. Why? Market mechanics. All the shorts and sellers would add the fuel needed to blast through all the previous sell points and garner strentgh. With vix at 40 we cna easily have 50 point range days without being "out of the norm" of this trading environment. The gap down by 10 does show that we have an extension of negative sentiment from Friday. But consider no 911 major catastrophe, news will be sprung re: Europe circling the wagons, etc. But I think a lot of people stepped aside again after we failed to hold 1200 and will just watch while this flops around. If we gap down but remain rangebound (like we are) then you have no edge......... :eek:
And you guys wonder why EMR was a failed trader? This numbnuts can't even decipher what a -10 ES means.
Will be an interesting week, the markets have sold down to these levels before and every single time they have looked like they were going to break down they propped right back up. Its happened a few times in the past couple of months, who knows what to expect tomorrow, markets might open lower and turn around and start a 2 or 3 day rally after last weeks sell off.