Well Well
The futures are down 20.5 on the SPX. This is on the backs of heavy losses especially in Bombay (-4%), and Shanghai (-5.80%). Asian Market weakness quickly spread to Europe as well as the DAX and FTSE are equally down about 2%.
All of this weakness stemmed from Japan's economy which grew less then economists had estimated. Also direct investment in China fell quarter to quarter. The Japanese economy even while it grew an at annualized pace of 4.7%, it lagged many estimates of 3.9%.
These developments have pressured US Stock Futures down about 2%. The Dow which closed at 9321 on Friday, will open down by about 175 points or so. It has support obviously at 9000, which should hold today. I again see the machines trying to stem the losses on the open, similar to what they did on Friday afternoon when they rallied the SPX bu about 10 points into the close.
tradersutra.blogspot.com/2009/08/markets-are-downits-long-ovedue.html
It was a classic low volume nobody at home ludicrous last hour rally.
It looks like money is coming out of risk assets going into Treasuries and USD.
Watch Energy and Technology.
This is where I expect to see the most losses and pain today.
The Financials will also see serious selling pressure.
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