Continued Correction In Index Futures?
Each evening we
focus on the most interesting aspects for the upcoming
trading day. The comments are based on observations of the
nightly updates of the Futures and Market Bias pages. They
are provided for educational purposes only and are not
intended to be direct trading advice. Also, keep in mind
that these remarks are made up to 12 hours in advance of the
markets opening. Therefore, overnight events may alter the
outcome of these observations.
The overbought nature of the stock market (see my Stock Outlook for details) combined with sell signals and
Thursday’s intra-day reversal suggests that the correction has begun in the
December S&P futures
(
SPZ1 |
Quote |
Chart |
News |
PowerRating). The December Dow
(
DJZ1 |
Quote |
Chart |
News |
PowerRating) and Nasdaq
100
(
NDZ1 |
Quote |
Chart |
News |
PowerRating) futures also look vulnerable.
Volatility Watch
December corn
(
CZ1 |
Quote |
Chart |
News |
PowerRating) has been a low-volatility situation for quite a
while. Watch for a large move (in either direction) as volatility reverts to its
mean.
Best of luck with
your trading on Friday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
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