Tomorrow's Plunge Protection Team (PPT) fight
As many of you know, I made a call on Monday (LINK HERE) suggesting the possibility we may see the DOW take out its 7,773 downside resistance level sometime later this week. Well, after today, another 225 points is all that will be required.
With that said, several economic reports are due in the morning and I'm betting the resultant data will be bad.
Nov 20 08:30 Initial Jobless Claims
Nov 20 10:00 Leading Indicators
Nov 20 10:00 Philadelphia Fed Nov
I expect the PPT to have their arsenal at the ready for any break below 7,800 (which will probably happen sometime during the day), and then fight hard to try and keep the DOW above an 8,000 close.
Bottom line: Its very likely we will see one of those (increasingly common) wildly gyrating markets tomorrow as the PPT fights to keep their "market confidence" charade game alive - if they fail in their quest, their goose becomes cooked and 7,200 emerges as the next downside support level & target. (Note: It's going to happen - timing is the only uncertainty)
Chart of the DOW today:
Here's another from Barchart - shrunk to a 2 1/2 month scale
Note Oct 12th - that level will be strongly guarded tomorrow