well , the S&P 500 last night failed in the last hour miserably - again supply was tested but met forcibly by sellers - upcoming halloween holiday bail out on the close or something more sinister ??? WE DO NOT WANT THE AUGUST LOWS TAKEN OUT !!!
Zinc now down to 2245 and so oversold its not funny - doesn't mean it can't go lower though and 2000 is now well and truly in its sights - its almost capitulating with the weekly bearish head and shoulders chart pattern that started 12 months ago playing out to perfection here and heading right on target - a reprieve should only be days away but my concern is whether it will only be temporary to unwind this oversold position , and whether it will then continue relentlessly lower. We will know soon enough .
In the meantime AIM itself is showing signs of capitulating - if 17c breaks it will do so but it will be at this point that we need to look for strength and hope cashed up bargain hunters show themselves.
To my thinking we are right on the verge of a major decsion making moment in the markets. If we crash during a time that should be traditionally a very strong period for the markets, there could be trouble a brewing . Fundamentally though the time doesn't seem right for this to happen IMO - interest rates arn't high enough yet , China and India still appear strong and China has the Olympics next year so they should continue expanding into their showcase. Housing and Subprime in the US is the red herring though - you'd think all the bad news in regards to this has now been exposed and absorbed by the market though ?? - but maybe it hasn't !!??
The sidelines really is the only place to be at the moment - the August lows in the US were met with extreme buying - this is the only positive I can find at the moment along with the positive seasonals, that may just hold things together here - hopefully !!!!
Good luck to anyone still holding AIM out there but I think some more short term pain may be in the wings. For the record , AIM is oversold but not in the extreme sense which means it can happily go lower before it wants to bounce in some capacity . Today is a very important day on our markets with US closed on Friday night.
ecn.
AIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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