first time in a week and a half ive seen some effort to put a bottom in....
S&P would need to push up another 2.5 pts to break its descending ressistance line thats been in place for 8 days around 126650 in ES06M ... looks like we could do 1.5 mil + contracts today which is a BIG days, slow days are around 400 - 600k contracts...
the volume is there but is anyone other than the fed ready to step in and support the market? seems doubtful but the market does need a break from its oversold condition... if it holds this down channel(which im betting it will) and we break 125000 then id be very worried being long any equity market, anywhere in the world... India crashed today, Europe and Asia have been taking a hit as well, the S&P has dropped 8 days straight and fell as much as 77 points so far...
any more and panic will start to manifest itself, there are alot of people long and alot of bullish sentiment out there, as major technical levels are broken to the downside you have longs being forced out, technical and program positions coming on strong, and large institution players will look for protection by selling futures or buying puts, putting more pressure on cash markets...
Gold has rallied 20 pts off the low this morning... i love the gaps they put in driving gold down at the begining of NY trading, rumors of some big players adding to shorts near the highs, this gold market is trouble for ALOT of people...if it can crack the overwhelming short put on by central banks and some big players all hell will break lose....
if people start to see gold testing its old nominal high of 850 and the market dropping, and bonds dropping, and the USD dollar dropping the move in gold will be so fast and furious ... all China has to do is up their gold reserves from %1.5 to %5 and you could easily see new highs...Middle Eastern Countries and Russia are also suspected of increasing gold supplies as they understand whats going on and the type of paper short position there is out there...
all that i know for sure is this is gonna be a crazy year...
