Friday, 26 October 2012

Pre-Market Brief

Overnight futures were somewhat weak, earlier lows were sp-13pts, which just about would open us at the big 1400 level.

Q3 GDP: 2.0%, which seems bizarrely high. I can only guess it'll be later revised 'significantly' lower. As they say..'lies, damned lies..and statistics.'



So, GDP is a touch better than expected. I'm surprised at the 2.0%, doesn't make much sense considering the other data-points which are worse now than late Spring.

The big level to take out is the cycle low of 1397. A close in the low 1390s would be VERY bearish for Monday, opening up 1370s....and also a further multi-day fall to the 1325/00 zone.

As at 8.35am...Sp -5pts @ 1408, I'd guess VIX is a touch higher, +3%

UPDATE 8.50am

Indexes are now all back to flat. So much for the overnight futures.

Once again, it was all a complete waste of time.