Morning Call: Futures Down, Close Day

November 6, 2008 10:19 AM

Today will be a close day as the futures are down this morning after more bad economic releases and warnings about retail sales. Why anyone is long retail here is beyond me. Anyhow, this is will be a close day and my readers know what means - close volatility is likely. Watch this gap and see if it is bought or sold. If it is sold, the market is clearly in trouble today. If the gap is bought it will make this a bit more complicated as the moving averages will want to force this lower early on. I personally would be a bit skeptical if we reverse today, but it is possible. My guess is traders want to get far away from 1000 on the SP here. 9350 and 980 were lids on the market for 3 hours yesterday. Those areas will likely be key today if it attempts to reverse. We will see.