Posted by califman4u on 5th of Dec 2008 at 10:33 am
This morning update.
I had warned the longs yesterday afternoon that it would be
dangerous for the longs after violating support. This morning’s
pre-market shows the reason why. The European markets are down hard
and the Employment Situation looks brutal. The consensus was for a
loss of 335,000 jobs. Today’s report was that 533,000 US jobs were
lost in November. The Unemployment rate rose to 6.7%, with the
expectation of much more to come in December.
This may be the beginning of what may mark this month as the
darkest in the history of the markets. The projected drop from 895
at the end of November to the minimum 630 projected low this month
is nearly a 30% decline. I have a double confirmation on that
projection and both calculations are considered as minimums.
The next support for the SPX is at 775, but I don’t expect
more than a temporary bounce. Support for the NDX is at 1055 and
the same expectation holds for it, too.
Gold may rally today as a flight to safety. We’ll monitor
that closely, since it is between a very tight range of support
(75) and resistance (76) in GLD.
Good luck and good trading!
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Posted by califman4u on 5th of Dec 2008 at 10:33 am
This morning update.
I had warned the longs yesterday afternoon that it would be dangerous for the longs after violating support. This morning’s pre-market shows the reason why. The European markets are down hard and the Employment Situation looks brutal. The consensus was for a loss of 335,000 jobs. Today’s report was that 533,000 US jobs were lost in November. The Unemployment rate rose to 6.7%, with the expectation of much more to come in December.
This may be the beginning of what may mark this month as the darkest in the history of the markets. The projected drop from 895 at the end of November to the minimum 630 projected low this month is nearly a 30% decline. I have a double confirmation on that projection and both calculations are considered as minimums.
The next support for the SPX is at 775, but I don’t expect more than a temporary bounce. Support for the NDX is at 1055 and the same expectation holds for it, too.
Gold may rally today as a flight to safety. We’ll monitor that closely, since it is between a very tight range of support (75) and resistance (76) in GLD.
Good luck and good trading!