Morgan Stanley said it was shifting its stance on European banks to cautious from in-line in tandem with its equity strategists cutting financials to underweight from neutral and equities to neutral from overweight. "We share the strategists' belief that the deepening of the ongoing financial crisis could have a serious impact on the economy and see greater risk of the current credit crunch leading to a recession in the U.S. - our U.S. economists themselves see a 40% risk of a US recession," said Huw van Steenis, an analysts at the brokerage. Here we go. Recession scenario. Ha, ha, ha...
We either bounce or another 300 pts towards next support zone on daily chart. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1677244>
Around 10:09am (Frankfurt time) all of a sudden the price gapped down 10 points within 1 second. Fortunately for me I was short, otherwise it would be a nasty loss. Thankfully these gaps do not happen often outside news times of course.
I do no trade any important S/R since my holding period is very small (from seconds to several minutes). I just find it a bit unconfortable (lol) with 10 points gaps all of a sudden.