Today's markets will open higher after the reversals in Asia and the prospects of rate cuts by the FED and ECB. We have a typical pattern at this stage, which might bring a short-term small upmove at least. The VIX 13 as of yesterday puts me on alert but a lot of other factors do not yet fit for a big turn. The major experience is being so close to a major low (the one of 2002) needs to be tested basically - but, as I wrote earlier, the days around a New Moon have a basic impulse to create a low and, since this market is undoubtedly oversold, reactions to the upside especially on 5 and 6 (setup) counts are a regular thing to happen but the countdown count at 9 for the SPX and 11 NDX requires one major index to reach a 13 basically. We will follow today's developments closely but this 2 day upside is a natural part of the current situation so far.
Tuesday, October 28, 2008
Market outlook SPX
Today's markets will open higher after the reversals in Asia and the prospects of rate cuts by the FED and ECB. We have a typical pattern at this stage, which might bring a short-term small upmove at least. The VIX 13 as of yesterday puts me on alert but a lot of other factors do not yet fit for a big turn. The major experience is being so close to a major low (the one of 2002) needs to be tested basically - but, as I wrote earlier, the days around a New Moon have a basic impulse to create a low and, since this market is undoubtedly oversold, reactions to the upside especially on 5 and 6 (setup) counts are a regular thing to happen but the countdown count at 9 for the SPX and 11 NDX requires one major index to reach a 13 basically. We will follow today's developments closely but this 2 day upside is a natural part of the current situation so far.
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