Thursday I wrote:” The early action will be ruled by the reaction to the unemployment figures, I assume that if we see early weakness the markets will be able to reverse later in the session, but all the time that the S&P does not trade above 918.50, bears have the chance to push lower, if the markets start on the red, look for strong support near the 908.50.”
Markets opened lower and never recovered. The fact that the sell off happened in front of the long weekend may not have the validity to be considered a breakdown of the sideways pattern, but a weak rally that get reversed next Tuesday or some follow through during today may be enough to call a short term high. I pointed that the 908.50 area was critical for the
S&P 500 to go for another test of the highs that keeps the sideways pattern holding a bullish undertone, so if last Thursday was a pre holiday sell off just to avoid a long position for the extended weekend, markets will have to show a strong reversal during today, any other circumstance will give way to a test of the next support area at 877.00
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FuturesPros.com - Written by Arthur Stern
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07-06-2009, 02:56 PM
FuturesPros.com Daily Analysis - July 6th 2009
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