Market outlook SPX

Today’s markets will open higher after the reversals in Asia and the prospects of rate cuts by the FED and ECB. We have a typical pattern at this stage, which might bring a short-term small upmove at least. The VIX 13 as of yesterday puts me on alert but a lot of other factors do not yet fit for a big turn. The major experience is being so close to a major low (the one of 2002) needs to be tested basically – but, as I wrote earlier, the days around a New Moon have a basic impulse to create a low and, since this market is undoubtedly oversold, reactions to the upside especially on 5 and 6 (setup) counts are a regular thing to happen but the countdown count at 9 for the SPX and 11 NDX requires one major index to reach a 13 basically. We will follow today’s developments closely but this 2 day upside is a natural part of the current situation so far.

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~ by behindthematrix on October 28, 2008.

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