Market commentary for 11/20/2008
Good day!
The PPI took the steepest drop in 50 years, the FOMC adjusted their outlook from bad to very bad and the markets plunged. It probably didn't help having the three auto makers begging Congress for money telling everyone how bad things are.
After a very choppy intraday action without direction, the indices started with heavy selling pressure at the 15:00 pm ET reversal period and brought the SPY and the QQQQ to new daily lows. The DIA still has a little room to reach that area. The daily volume increased and the indices closed at lows which suggests a continuation Thursday in the morning. On the 60 min and daily charts I will draw the monthly support areas and we can see that the SPY has a little room while the DIA and the QQQQ have much more room. For now we look what will be the next support area for the market. It will be important to see the pace for the next few days, because if it is slow choppy action will continue, then risk will remain high. Also, we must keep in mind that we still have bad news market so we can see strong gaps in both ways. For now good news is non existent, and every bounce come with new lows and the odds are that will continue. For now the market is heading down and telling us the selling pressure will continue next few days.
Scalps will stay as the safest places for lower risk setups. Everything longer than several hours is high risk right now.
Good day!
The PPI took the steepest drop in 50 years, the FOMC adjusted their outlook from bad to very bad and the markets plunged. It probably didn't help having the three auto makers begging Congress for money telling everyone how bad things are.
After a very choppy intraday action without direction, the indices started with heavy selling pressure at the 15:00 pm ET reversal period and brought the SPY and the QQQQ to new daily lows. The DIA still has a little room to reach that area. The daily volume increased and the indices closed at lows which suggests a continuation Thursday in the morning. On the 60 min and daily charts I will draw the monthly support areas and we can see that the SPY has a little room while the DIA and the QQQQ have much more room. For now we look what will be the next support area for the market. It will be important to see the pace for the next few days, because if it is slow choppy action will continue, then risk will remain high. Also, we must keep in mind that we still have bad news market so we can see strong gaps in both ways. For now good news is non existent, and every bounce come with new lows and the odds are that will continue. For now the market is heading down and telling us the selling pressure will continue next few days.
Scalps will stay as the safest places for lower risk setups. Everything longer than several hours is high risk right now.
No comments:
Post a Comment