Jan 27, 2015, (8:50 AM EST)
Awesome! Fantastic!! Fabulous!!
That’s how bears are reacting to today’s numbers in European markets and U.S. stock futures 🙂
Dow Jones futures are down by nearly -300 points and sliding further, European indexes down by more than one percent and blah-blah-blah- all meaning that European markets and U.S. stock futures are literally bleeding numbers!
Tomorrow the Fed arrives spooking U.S. markets about its rake hike plans, and today, Crude Oil prices tumbled below $45 for a brief period raising possibilities of oil going down to lowest levels of 2009, near $40. If that happens, European markets can kiss goodbye to any QE money from the ECB soon.
These two factors have triggered a profit booking in European markets at high levels and a deepening correction in U.S. markets.
Dow Jones is expected to open near 17,300, which has been its strong support in recent months. If Dow crashes below this level and fails to recover, then the index will find next support only at 17,000.
That is the level I’m watching for.
Watch this index carefully after a gap down opening for any bounce back from support levels. U.S. markets are still within a smaller range created over last few months so markets might recover after a gap down opening. If that doesn’t happen then bears’ party will continue till the closing bell 🙂
Good luck for that, enjoy the day, have a great session in markets today!
See you later.