Thursday, October 01, 2009

Next steps

Now that 1028 target is hit, I think a bounce is very likely. At least a "technical" one. Given the sharp sell off we had, the bounce can run quite a bit, maybe upto 1049 area. This possibility is supported by the pattern on McOs shown below.







ES close up:
Key levels are below: If 1023.25 is respected during trading hours, the bounce upto 1049 area is the most probable play.
If 1023 is taken out with authority then 990 area is the target.

Regarding jobs numbers tomorrow, content doesn't matter ( as I always say) but is very probable the market rises after hours to gap up before the data. I believe data will be disappointing so important selling may follow.