Good morning. Futures are moderately lower, sp -6pts, we're set to open @ 1644. Bears should be seeking to take out yesterdays low of 1636, that will open up the target zone of 1630/25 by late afternoon, and should equate to VIX 16.
So, we're set to open somewhat lower, certainly too dramatic, but neither is it higher!
With no QE today, bears have a window of opportunity to whack this market lower. I think there is a pretty good chance of 1630/25, which for me would merit an exit, and sit on the sidelines across the long weekend.
Those bears thinking the decline will continue much of next week, should review the Feds POMO schedule, which has very large QE next Wed' and Friday. Bears beware!
*I am heavy short the indexes, seeking an exit into the Friday close, preferably sp'1630/25
Durable Goods Orders come in better than expected, 3.3%, vs 1.1 expected, market rallies a few pts on it, sp' -5, 1645.
I just have to wonder, is today going to be an early minor drop and another wave to 1660 (key fib level)...or are we just going to keep falling across the day?
As ever...holiday reversal, and he will be going massively bullish next week