Even though it was a false alarm, equity futures are still down as oil is trading solidly above 63. There is an added element of fear and the realization that the rally could fall apart any minute. ES (SPX future)is now trading below 61.8% 2007 (1438.50). Overnight action will be interesting, but it looks like NQ's (NDX future)loss of 1819.25 is spilling over to the broader market.
The Yen is on a major bid overnight and I would use extreme caution with equities at this point. We could have very well see this highs from this corrective bounce off March lows should ES be unable to regain 1438.50.
This entry was posted
on Tuesday, March 27, 2007 at 3/27/2007 09:24:00 PM.
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