Saturday, October 20, 2012

The S&P should trade below Friday's low

Based on the way the S&P Futures closed, they should trade down to the 1416.50 number, at a minimum.  Below that, next support sits at 1404.75.

Despite the fact that we had a large range trend day down, and the model for Monday is a morning consolidation, those lows have a better chance of being tested early in the week, and may even get there off the Sunday night re-open or Monday AM on residual selling.

If not, and we instead correct in an upside drifting fashion, then I will be watching for a post FOMC sell off to those levels.


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