12,550 and then 12,302 are two more extreme downside targets for December Dow futures.
Monday I am going to switch to the Mark contract.
The high Wednesday morning was 13,251…. Today’s low tick was 12,670. From tip to trough, that’s 581 points, or 5800 bucks for every contract. 3 days to take out 1/2 of a rally which began back in June with the Dow at 12,000. The high of the move came on October 5th, 2 days after the first Presidential Debate. Obviously, the market was factoring in a potentially different outcome than what we got in reality.
To recap. We had a 1,644 point rally which began on with the June 1st low down at 11,955.
The high tick was 13,599.
The high just 3 days ago, on Wednesday, the morning after the election, was 13,251.
Today’s low at 12,670 represents a 56% retracement of the 5 month rally. So, we are sitting mid point the range.
The bulls are worried and the bears are getting paid.
I believe this is a correction to be bought.
That is all.
CER