What to expect next week. The volatility index is moving into a rising wedge which should be ready to break beginning of next week pushing the S&P a bit higher. A backtest of this breakout hopefully makes the S&P retest its 1180-1200 support line. After that we might see a slightly oversold market which then would form a nice setup for a year's end bull market rally. If the S&P dropps below the 1180-1190 support, which is also the 50% retracement, a move to the 61.8% retracement (1160) and lower would be the result. In this case we might retest the Aug/Sep lows.
There is a worst case scenario I am kind of afraid of. If an American bank will get into trouble I'm not sure if the US does have the necessary money or support to bail them out. This scenario could bring us new lows. I'm not worried about European banks as they have the necessary support.
There is a worst case scenario I am kind of afraid of. If an American bank will get into trouble I'm not sure if the US does have the necessary money or support to bail them out. This scenario could bring us new lows. I'm not worried about European banks as they have the necessary support.
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