Most distress sector so far are housing and financials. Today S&P has downgraded 3 big investment banks Lehman, Morgan Stanley and Merill. I see $23-24 key support levels on financials and $16-17 on housing.If they lose the support around that area we can see fear rising in the markets.
Oil is showing more signs of bullish but it needs to consolidate at this level for any rally as the indicators are showing over bought on weekly time frames, And I'm hoping this will rally to $150 if it consolidates at this levels for few weeks here or pull back and bounce around $120. But at the same time it has to stay bounce strongly @ $120 for pull back rally.
Street tracking the gold is over sold at this levels and may be its time for the metals play.
All the key indices are showing more and more weakness as we clearly see the over head resistance and are over bought in longer term with more than +15% from Jan/Mar lows as we had enough correction for this bear market and we can clearly say after todays action the markets tested 10 day weekly prices which is not a good sign. Look into the markets the past week was window dressing with the month end profit taking with last friday of the month and coming on first monday of the month sell off which is unsual and definitley we see more downside in the markets, this is my idea about the markets and will post back few multi year breakout in energy sector.
where are the key level? I dont know about the support but i would say these are the level of resistance on the indices:
S&P 500 - 1388 - 1400
Dow Jones - 12708.87 - 13000
Technology - 2500- 2550
