The NASDAQ and broader markets were pummeled amid continued credit fears. The AIG/Fed Reserve deal to prevent bankruptcy failed to instill confidence. The initial bounce in the futures when the deal was announced was wiped out overnight and weak housing data only served to exacerbate fears. The indices did stabilize during the afternoon but the bears took control of the last hour which led to another round of selling and new session/multi-year lows at the close. Selling was paced by financials and broad based. Gold, silver and oil/gas were bullish.
Looking for signs on positive divergence on the 15 minute time frame is a stretch, so I expect to go lower. The market is clearly oversold and the VIX is testing resistance, but we need to capitulate before looking to get long. Once we do capitulate, I think there will be some great long trading opps in tech.
Economic calendar: Initial claims in pre-market and Phil. Fed at 10:00
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