The SPX daily chart turned down with a green 7 (upside) but counted a red SEQ 8 downside. As I mentioned earlier, a lower close tomorrow would erase the green counts, but I rather think, as we will see rate cuts in Europe tomorrow, the spirit might be positive for a day but rather not sustainable. We are in price action poised for more correction to the downside. The VIX made as thought the upside move today, so we have to see here as well how substantial those moves are by tomorrow's price action. It looks as though we could see a mixed day tomorrow as all moves up (yesterday) and down of today were on very low volume. The bad financial news about the Mono's today, plus the ignored bad news of UBS and Swiss Re yesterday, dragged financials down and looking on some single charts like Citi or Morgan Stanley (many more names but just two samples) they need to come down quite a bit still. The Bulls in Inv. Intel. jumped quite a bit to 30.3 from 23.1 and Rydex just below .80 takes away some wind from the bull camp. The economic data today was very bad pointing to ugly jobless numbers on Friday, which might spoil the rate cut hype of Thursday.
Wednesday, November 5, 2008
SPX technical outlook - market wrap-up
The SPX daily chart turned down with a green 7 (upside) but counted a red SEQ 8 downside. As I mentioned earlier, a lower close tomorrow would erase the green counts, but I rather think, as we will see rate cuts in Europe tomorrow, the spirit might be positive for a day but rather not sustainable. We are in price action poised for more correction to the downside. The VIX made as thought the upside move today, so we have to see here as well how substantial those moves are by tomorrow's price action. It looks as though we could see a mixed day tomorrow as all moves up (yesterday) and down of today were on very low volume. The bad financial news about the Mono's today, plus the ignored bad news of UBS and Swiss Re yesterday, dragged financials down and looking on some single charts like Citi or Morgan Stanley (many more names but just two samples) they need to come down quite a bit still. The Bulls in Inv. Intel. jumped quite a bit to 30.3 from 23.1 and Rydex just below .80 takes away some wind from the bull camp. The economic data today was very bad pointing to ugly jobless numbers on Friday, which might spoil the rate cut hype of Thursday.
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