The market starts out good so far with a lower opening and the turnaround in hourly charts. That's a start which looks good for a temp. low (due to some sızable program buys at market- someone wants to support the market here). On the left hand, you see the VIX index, which is close to make a daily SEQ 13 but has not yet - need to go a bit higher. That 13 would be a great indication but the price action is good so far. Strong part of the rally is the SOX, which defended basically the 260 area and rallies sharply. The XBD is also doing its part defending the 100 with a SEQ 13. If we can hold today's lows going forward today, we will see follow through short covering - but we need to see how markets deal with sellers into strength for another 2-3 hours. My gut feeling on top of all says we are about to make the temp low. The NDX was down to target 1300, 970. SPX might do the trick for now and the DOW was also at target 9100 almost. These levels should do it very short-term - we have got to read the tape carefully as Art Cashin said so rightly - he is one of the few guys worth listening to on CNBC with Rick Sentelli.
Wednesday, October 8, 2008
Technical update for today and this week US markets
The market starts out good so far with a lower opening and the turnaround in hourly charts. That's a start which looks good for a temp. low (due to some sızable program buys at market- someone wants to support the market here). On the left hand, you see the VIX index, which is close to make a daily SEQ 13 but has not yet - need to go a bit higher. That 13 would be a great indication but the price action is good so far. Strong part of the rally is the SOX, which defended basically the 260 area and rallies sharply. The XBD is also doing its part defending the 100 with a SEQ 13. If we can hold today's lows going forward today, we will see follow through short covering - but we need to see how markets deal with sellers into strength for another 2-3 hours. My gut feeling on top of all says we are about to make the temp low. The NDX was down to target 1300, 970. SPX might do the trick for now and the DOW was also at target 9100 almost. These levels should do it very short-term - we have got to read the tape carefully as Art Cashin said so rightly - he is one of the few guys worth listening to on CNBC with Rick Sentelli.
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2 comments:
Could this be the day Art Cashin has been waiting for? Finished at the lows yesterday, needs a drop this morning till around 11.30 a.m. then sharp rebound. At the moment the DOW is all over the place, opened 233 down, bounced back to 125 up within a few minutes now flat again. Let's hope he's right !
We have to wait and see - some weakness intraday ahead - but we got a good chance ART might turn out right but he looks for a monday/tuessday combination. If not today we have a good chance tomorrow for a brief turn.
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