Futures are down considerably this morning with the /ES presently at 692, down about 20 points. That's a huge gap move, very difficult if you were not positioned for it at the close yesterday.
GM is questioning its own survival, adding pressure to equities, and weekly jobless claims fell 31,000 to 639,000 for the week.
(cnn)For the week ended Feb. 28, 639,000 Americans filed initial jobless claims, down 31,000 from the 670,000 claims reported the previous week.
Economists polled by Briefing.com expected 650,000 claims.
The number of Americans continuing on unemployment insurance dropped by 14,000 to 5,106,000, edging off the record high set the prior week.
Wal-Mart reported substantial sales gains for last month citing lower fuel costs as giving consumers more to spend – lol. How about people who would otherwise prefer to shop somewhere else are left with no choice?
We’re beneath the 696 pivot, the next lower is 644.
On the TOS chart with overnight action I see a potential ending diagonal, but that is not apparent without after hours action.
I think you need to get protective with this move as my count has us being in wave 5 down of 3 of 5. I would expect about two weeks of wave 4 prior to the next wave, but I don’t exclude further declines knowing that wave 5’s can extend. And, it’s also still possible that we are making an abc off the bottom two days ago… we won't know for sure unless the prior low is taken out.
Look for more comments as the day progresses, appreciate your input too…
Have a good day,
Donovan – Atlantis: