asx down one and a half % for the week

The ASX was down about 1 and a half percent for the week and so far the Dow down about 2 percent.

What next week will bring is anyone’s guess of course however with the lead up the banks stress testing announcement due in the US May 4, I think there is going to be a lot of nervous punters out there as well they should.

I think May 4 will be a stress test not only for the banks but for the markets in general.

If the results are not that bad, the market may bounce and bounce hard however if, as I think is more likely, a bad result, it could send the market into a new wave of selling pressure and we should see the ASX follow suit.

I am predicting some leaks during the week and I will be watching what the US banks do on the market.

If we see some heavy selling, then it will not bode well for the May 4 announcement as I believe the banks have already been informed {Friday} of the results.

We may even see as soon as tonight {Friday} some reaction and no doubt the market will be rife with rumor.

Keep an eye on it.