Wednesday, 23 May 2012

Pre-Market Brief

Futures are showing dow -90pts, that could easily extend in the early morning to -125/150.  For those looking for a minute wave'5 lower (as part of what some still believe to be ongoing minor wave'1 down), we need to see dow -166 to break a new low. Of course, that doesn't have to happen today for the bears.

For the bulls, they have to be desperate to see today  close green. Real desperate. The only realistic hope of that is some kind of statement/rumour from the EU. Right now, chances of that seem low on any given day.



A rough opening looks set for the bulls. If we break a new low at any point today, that would really bode badly for the rest of this week. In which case it would be clear, yesterday morning was a cruel fake out to the bulls. The next prime target below sp'1292 would be the 200 day MA at 1279.

One aspect to watch as ever, the VIX. Can it break a new high into the 26s ? If we do see 26s, then that opens the door to the next level of 29/31 .

Good wishes for Wednesday