Market Recap: Trend Day Down, Watch Tomorrow

November 6, 2008 6:16 PM

Well, the market today was mostly a typical trend day down. The gap down was initially bought early, but that low was quickly taken out. If they wanted to reverse this selling i believe they had to do it early on. These days tend to close at or near the low of the day and being long is risky. Normally on days like today, the gap is sold and that creates a firm high of the day. That wasn’t the case today. The early attempt at buying the gap failed almost immediately and that was it.

Tomorrow could be a different matter. If we gap down tomorrow I believe we may reverse the selling. If we open up, I am very skeptical it can last. We need a firm low above the low as I see things. I still think it is very unlikely we have seen the “ultimate” low, but who cares, for now. Anyhow, if we open up tomorrow, I believe early strength will be sold once the run stops. If we open down, the gap reaction will likely once again tell the story here. If we gap down and it is bought early on, I believe we will close positive.

Written by Tom@StockBlade.com · Filed Under SP Futures

Comments

One Response to “Market Recap: Trend Day Down, Watch Tomorrow”

Scott on November 7th, 2008 10:32 am

Well, The Jobs were very ugly and every other piece of news released was ugly yet the futures are still up. Baffling!!!

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