Don't say I didn't give you fair warning "in advance".
Here is today's pre-opening comment:
The indexes are due to open substantially lower today with the DOW
down about 100 points and the NAZ down about 35 points at 9:00am.
The
indexes will likely get down to some pivotal support levels with the
DOW showing support between 16703 and 16743, the SPX between 1950 and
1953, and the NAZ between 4404 and 4413. It is unlikely those levels
will be broken today as the traders will likely wait for tomorrow's ISM
Index and Jobs reports to make a major decision.
Nonetheless,
as I have stated for the last 2 weeks, "I doubt the economic reports
will be good enough to stop the market from getting into the seasonal
correction".
Keep in mind that in 2011, the year
that mostly mimics what is happening now, the indexes started the "sell
in May and go away" seasonal correction the last week of July and now
the same thing is happening.
The indexes will
probably show some volatility today but should stay under sell pressure
most of the day. By the same token, those supports levels are not likely
to be broken today, though tomorrow is another story.