BT/kchan
I always track these fed days and the market reaction tends to be the opposite of what occurs on that day (in coming days). So thinking we are close to a nice rebound here (that may be very shortable...not sure at this point).
At any rate, I tend to think that GS won't live below $100 for very long.
Also and looking at RIO, FCX, MCP, XOM/XLE and the action appears close to capitulation. That may take a day or two more to play out. So I expect a rebound in these financials and commodities unless the euro/greek and Italy concerns next week fall apart. Most of this stuff is baked in.
My concern is that technically we are bear flagging pretty hard on almost everything and transports near lows. CSX and also Coal names give me cause for concern. That said, it just looks like today is overdone, that these stocks will rebound after either premarket lows tomorrow (or a later day test of lower support).
Also, we are very near longer term trend support on the indices (say 10 its on spx and 100 or so on dow). So even though it looks like we have a bear flag going here (and that may play out), it looks to me that we should bounce after pre-market but if not, then later Friday or Monday.
Some technicals but also some speculation here of course...its just the sentiment indicators don't support the price/volume action when looking across the board (that is, for these extremes, I would have expected lower prices already).
If we do anything other than just gap down tomorrow then I think I'm wrong (especially f we continue down), and will have to revise my thinking. Chart-wise I must say I'm bearish, but overall just neutral here and need to see next few day's action...for my part I just need more info... Mike
