Any time, up ’til now, when I checked on the futures trading overseas, they were pointing up. However, here, just a little more than 1 hour before our open at 9:30, I see that they are now off by some 2 to 3 tenths of 1% as of 8:08 a.m. EST.
I don’t mind telling you, as I did earlier, that a quick scan of a lot of charts over the weekend showed a lot of things that had totally begun to break down on Friday. I know that can mean considerably further mess, as a follow-through.
I stand by my call though, I believe we’ll very possibly see a meaningful turn in this week, at least from this morning’s perspective, and that we need to be on a high alert for that prospect and possibility.
From what I have read elsewhere, it would seem that the Fed will literally have to reverse their stand, and not raise rates on Wednesday in order to signal that they are noting what the markets are saying and that they will be wanting to avert a potential disaster… just see what is going on with the high-yield, junk-bond market for one example of the breakdown taking place.
O, and we need to note that indexes are closing below those moving averages many use to time their exit entirely from the market. We need to see where these end up at the end of the month/year!
Here’s to your successful investing!
Harold F Crowell