Wednesday's comments:
S&P Emini 500 Futures opened with a 2.50 point gap down this morning. The gap filled with a pierce through that level during the 9:50 a.m. 5 minute candlestick, but that proved to be the high for the day at 1060.25. From there, prices plunged on above average volume. There were a couple of brief retracement periods during the day, but for the most part, price action was steadily lower. Prices closed at the low end of today's trading at 1039.75. Volume was heavy at 2.8 million contracts traded. The day's range was over 20 points deep, the average true range is 18.38 points. This marks the fourth day of lower highs and lower lows on greater than average volume. A down trend line on the daily charts has formed, and it shows a break through the 50 day moving average. Tomorrow may see a bullish bounce after the 4 consecutive down days, but a close above the 1060 level on good volume would be a clue that support has been found. Meanwhile, we trade what we see, and we see a down trend. Today's action erased one more open gap. The October 7th close at 1053.25 filled during the morning, leaving two more unfilled gaps underneath at 972.25, and 902.00. The lowest of the two open gaps currently falls just below the 200 ma, and not far from supported price levels at 875.00 from this summer. It's possible that level might be a reasonable correction expectation.
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Are we taking out the 1053 Oct 7 close ? Market is now 1055 down 11
Leaving " two more unfilled gaps underneath at 972.25, and 902.00. "
YIKES !!!
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