sinking fast futures look bleak for weekend, page-51

pkc111,

-400 can be fine if the previous close was on the low for example. The market will have a huge overhanging gap and when it opens either rally hard and probably run up hard positive or alternatively collapse in a heap at open and then rally hard later in the the session.

Or if the -400 breaks the price down out of its current channel to the bottom of the next channel down. There it will bottom out and will rally. Same if it breaks way down below a lowe bollinger band.

However, if you take a look at the futures chart, the probem tonight is the -400 creates will cause no gap as (perversely) the Dow did the wrong thing by finishing up last night. Effectively it closed up at the top of its channel and the futures show it has failed to breakout above it to the next channel. So its down 5% or so to the bottom of the channel for a test down there, which is where it will probably open. Its failed to break up 3 times and this is its 3rd go to break down. If it breaks this time it will fall another channel width - so roughly 10% down for the night would be likely. Then it will hang around at the bottom for a while, try and get back above the moving average, usually wait for the bollinger bands to tighten up then rally back up. Easy. Lol

These are just my opinions. DYOR