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Lack of Buyers Drives Stocks Lower; May Be Start of Something Bigger

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 5, 2010.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    A top-heavy, overbought stock market finally succumbed to selling pressure on Monday, plunging sharply lower. Since September 21 there have been three closing price reversal tops on the December E-mini S&P 500 chart, indicating that investors were selling rallies.

    Investors were also buying breaks, which in hind-sight was not buying to get long, but rather buying to set-up more shorting-opportunities. Monday’s sell-off looks as if bids were finally pulled, allowing the market to collapse from the lack of buyers.

    Monday’s break didn’t do any damage to the daily main trend which will remain up until the last swing bottom at 1117.25 is violated. If this occurs, then look for a further decline to the major 50% price level at 1093.00. If equities are topping, then today could be an indication that a much larger break is likely over the near-term.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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