Stocks were on the downslide today after not so good economic news in the US this morning as noted in the economic calendar below, and perhaps more importantly another down day for oil.
As you know I had suggested some time ago that we had made a short term bottom. And that we were likely to see a largely technical rally that might go higher than you might think, maybe 20-30% retracement.
But unless something substantial changes in the global outlook, that then we might see that rally fail and we could go back down and not only retest the low, but set a new one. At the time I suggested we *could* see 1770 on the SP 500 futures.
I’ll stick with that for now. But I have added a trendline in blue to the chart to give myself some idea of what any shorter term corrections might look like, as opposed to another big move down lower.
Yahoo after the bell.
Have a pleasant evening.
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