Daily Directional Forecast:

Mohan's Market Force Daily Directional Forecast
by Mohan

October 2, 2009

Market Force: Bearish/Neutral. Watch for lower, early prices today but expect support to come in as the market stabalizes for rebound.

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Recap of Thursday's Action:

Good morning and welcome to Friday's trading action.

The market had a well needed 2nd level sell off on Thursday as the combination of various technical factors converged along with several key government reports.

Our Directional Forecast was wrong on the day as the market moved under Key 1052 support and just got blasted lower with no rebound action at all.

Several sessions ago I had talked about 1021.50 being a key short term lower move. The lows on Tuesday were at 1024.50 on the pit traded big S&P500 futures.

On Thursday the Market Force readings were suggesting we would see another blast to the upside before resuming a lower move. The possibility of a 2nd level sell off was there but I did not mention it in the briefing. That's the surprise of the markets for you once in a while.

For today we will want to watch for a slightly lower move to potentially trade down towards the 1018 area but watch for support to come in.

More on today's trading strategy below...

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