Monday Morning Is Gonna Be Down (no surprise there) – Sunday 08/07/11 © ™

  • Short Term
  • July 7, 2011 – Present
  • Step 2 Down Underway 
  • Action Status – Sold

Stock markets are open in Asia and they are down hard at the moment, about 2-3% down.  If Europe is down hard tomorrow there will be little chance for an early rally in the US.  With Asia down hard, I’m surprise that the SP 500 futures aren’t down more.  The futures dropped to about 35 points down early Sunday and then rallied to about 18 points down.  Currently it’s 21:20 EDT and the futures are down about 30 points.

35 points in the SP 500 is equivalent to about 350 points for the DJ Industrials.  We’re going to watch closely for a climactic ending to the current decline.  If we can’t get a climax and reversal, that doesn’t bode well for the market.  It would be a reminder of 2008 when the market became severely oversold and kept on going down.  Hopefully we aren’t dealing with that but we have to be aware of the possibilities.

The chart below is the SP 500 futures, 10 minute bars, August 1 to Sunday August 7.  The futures have made a double bottom with the Friday lows and we’ll wait and see if that’s significant.  As I said before, tomorrow will be interesting.

08-07-11 SP500 FUTURES 10 MINUTE BARS

08-07-11 SP 500 FUTURES 5 MINUTE BARS

See my charts (updated constantly)

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