Wednesday, February 4, 2009
Wednesday was a day to sell the morning rally. After touching the 850 level we quickly sold off into the close and the action left us underneath the crucial 830 level. After hours CSCO gave a gloomy outlook on the economy and the futures sank further. I am looking for more weakness into Thursday.
The pivot point is at 834.75. I'm not so sure we get back up to that mark Thursday, especially if the jobless claims come out bad in the morning. I will be looking to sell a gap fill assuming it occurs. I think it will difficult to get any moves over the pivot Thursday. The ambush short from Wed. worked out perfectly as it rolled over in the 840s and headed down. The target on that large short is clear down around 793. Not saying it happens this week, but it definitely has a shot.
Either way I would be lightening up on any longs (if you have any) until we show some strength up above the 850s. For now I think we are headed for at least a retest of 800, and perhaps lower.