Home > Uncategorized > 2012/10/23: Quick Post: Courtesy Market Alert: Probably NOT Equities Big Bust …Just Yet

2012/10/23: Quick Post: Courtesy Market Alert: Probably NOT Equities Big Bust …Just Yet

© 2012 ROHR International, Inc. All International rights reserved.

Short & Sweet again on the specific market comments in this post, because today’s TrendView Market Alert is a pointed discussion of the most critical short-term technical area NOT being the (now violated) December S&P 500 future 1,430-20 range. In other words, there are lower supports which are more important… like the 1,400 area and its Tolerance in the 1,389-87 range, which was held on minor reactions when the market was on the way up into August and early September. It was also the heavier congestion on the way up into a temporary top in March-April. 

 

Global economic weakness confirmed by OECD, IMF, World Bank and other projections finally seems pronounced enough to weaken top line corporate revenues sufficiently to impact earnings. And that is a good deal of what has weakened the equities over the past several days. And on this cycle that just happens to be accented by significantly weak economic data so far this week. Yet that has been on a relatively modest number of releases so far, with the more major macro-economic and central bank influence picking up on Wednesday. The Weekly Report & Event Calendar is also available via the link in the right hand sidebar.

No doubt this morning’s gap lower opening below the 1,330-20 support is important. And that will be key short term resistance on any initial retest. Yet, aside from the importance of the lower support, at least so far the lack of confirmation from other asset classes is also not consistent with equities turning down in a major way right now. Note the relative weakness of govvies, and lack of US dollar strength.

It all seems to smack of the need to remain circumspect pending further equities activity.

Thanks for your interest.

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