Tuesday, July 31, 2007

Get Ready.....

Something interesting is going happen in tomorrow's market session

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ES down 16, NQ down 17, YM down 133, ER2 down 13 as I type this. Every market is down 1%, with ER2 leading the way of course. The culprit? Probably this rather grim piece of news about the troubles facing one of America's biggest mortgage lenders, AHM.
We are going to gap down tomorrow. Huge gap downs tend not to get filled (at least not within the first few days), but if they do, that is a rather bullish sign.

How, when and how much that gap gets filled will speak to the conviction of the bulls. We should see the PPT make an appearance tomorrow.
It will be interesting, make sure to wear your crash helmets !

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