Dow, SP500 and FTSE are now very close to take new lows and hereby start the next sharp drop.
A Friday US close below 10.517 for the Dow, 1.087 for SP500 and 4.888 for FTSE will trigger a very strong risk for another drop down to below 10.000 for the Dow or 8 percent from current level.
Wednesday Dow fell 284 points triggering Asia and Europe to sell US stocks so the Dow opened with a gap Thursday which caused panic selling with a result of a 391 point drop. The big question is how Asia and Europe will perform Friday. A new gap on downside could push Dow to close down 218 points which is one point below the lowest close. To get an effect I guess that we need at least 280 points.
The second alternative is that 10.517 will hold Friday. The players who still are short Dow will take their profits and square the positions before the weekend.
All indexes are moving as Dow right now which make tracking easier.
During the weekend I will publish the outlook for next week.
A Friday US close below 10.517 for the Dow, 1.087 for SP500 and 4.888 for FTSE will trigger a very strong risk for another drop down to below 10.000 for the Dow or 8 percent from current level.
Wednesday Dow fell 284 points triggering Asia and Europe to sell US stocks so the Dow opened with a gap Thursday which caused panic selling with a result of a 391 point drop. The big question is how Asia and Europe will perform Friday. A new gap on downside could push Dow to close down 218 points which is one point below the lowest close. To get an effect I guess that we need at least 280 points.
The second alternative is that 10.517 will hold Friday. The players who still are short Dow will take their profits and square the positions before the weekend.
All indexes are moving as Dow right now which make tracking easier.
During the weekend I will publish the outlook for next week.
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