Go Deep, Then Stop

Well, we did warn you. Lousy index action after the recovery of the August downturn has resulted in another index meltdown. This coming week’s action will have great liquidation potential and may, if low enough, put in a low that the forth quarter that the bears will have to live with. Bond futures topping this week, oddly enough with most commodities, will have the markets looking for re-tests next week to the high ground from which they will fall. Some may of coarse, with the exception of the stock indexes which may find it hard to generate much upside interest in the next sixty days.