The bearish wave swept through the market again, renewed its vigor that had subsided last week. I believe the momentum will grow as the CBOE volatility gauge is pointing up again. This is despite some decent earnings from a couple of companies yesterday. Although the market was bearish, it was pretty steady and less whipsawed than those days that swung between 800 to 1,000 points in one day. This is very conducive to the short sellers.
The Dow broke the triangle chart pattern, so had the S&P 500 (SPX). Now I am looking at the last straw which is the common support from the last low to break the market once more. Once break, we are on the new wave of the bearish trend. Based on the futures market data and the higher volume from yesterday, it may just happen as soon as the market opens. This is time to take some positions, my friends.
While the Crude Oil stays steady since it made a new low at 66.58, the gold price crashed again. The futures market has seen the price broke even the last major low. There seems to be no support for the gold at this time.
DJIA Daily Chart
The Russell broke the triangle pattern but stayed above the new support line. But I expect to see that break when the market opens. You may consider buying some put options on this index.
RUT Daily Chart
The Nasdaq was surprisingly more resilient than other indexes. Nevertheless, I guess it still may not hold the line. A break can occur very soon.
NDX Daily Chart
STOCKS TO WATCH:
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