Downtown?

Just listen to the music of the traffic in the city
Linger on the sidewalk where the neon signs are pretty
How can you lose?
--Petula Clark

Overnight futes were deeply red. Dow was down another 700 at one point last nite. After subsequent gyration, domestic mkts opened about 1% lower. Then came the requisite bounce which took them green.

That has since stalled and markets have begun rolling over. Best guess (which is worth next to nothing, of course) is that if bulls can't rally 'em right around here then we're headed downtown.

The bears, having been scorched so many times in these situations over the past few years, are likely to be tentative in their actions. They'll particularly be on the lookout for policy maker signals that investors backs are still protected.

Absent that, the 200 day moving average below at 2550ish seems an intuitive level for the bulls to make a solid stand.

no positions