This will be the bulls best friend the rest of the evening.The markets opened weak and got progressively weaker throughout the day. We closed near the lows which is a bad sign and a taste of things to come tomorrow. We may very easily test the Dow 11,973 lows of March 5th tomorrow. Support at these lows will be an encouraging sign from a bullish perspective. A break will be very bearish.
The following factors played a key role in todays market slump.
- Weaker than expected retail sales
- Rising business inventories
- Continued weakness in the mortage sector
I expect weakness in Asia and Europe overnight and I expect continued weakness in the US equity markets tomorrow unless, we test those March 5th lows early and rally into the close.
2 comments:
Bartender,
Can you make mine a double? And pass the peanuts please.
Ah, crap. I sold my puts today, should have held on to them...
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