Thursday, 7 January 2016

Pre-Market Brief

Good morning. US equity futures are severely lower, sp -41pts (2.1%), we're set to open at 1949 (overnight low, -55pts @ 1935. World equity markets continue to unravel, Germany -3.4%, Japan -2.3%, with China halted -7.3%.

sp'monthly2b - Guppy


*most of you will have heard of Guppy... some guy from Australia I believe (often appears on CNBC-Asia).

The point is... ANY action under 1900 opens the door to 1750 or so.... next Mon/Tuesday.

Something to consider for those who think 'buying the dip' might be a good idea.

So.. the market is NOT going to stop at the gap zone of 1954/51 today. Next support is the weekly/monthly lower bollinger in the 1920/00 zone.

If the market closes Friday near the lows, then the setup for Monday will be another 125/150pts lower... before first opportunity of a bounce.

Those with eyes on the bigger picture should not be surprised... at all.

Other issues...

Oil -3.5% in the low $32s. A break <$30 would offer a market crash to the 1700s.
Gold continues to hold a fear bid,, +$5.

Overnight action...

Germany: -3.4%.. having lost the giant 10K threshold.  8K is natural target.
Nikkei: -2.3% in the 17700s

China: opened sharply lower, market HALTED -7.3% @ 3115. There will clearly be a fierce battle around the 3K threshold, but I would imagine even the communists will wave the white flag.. and let the market implode to next support in the 2500s.

Have a good Thursday