Wed Market TAO 9-02-09

ES Futures overnight sold down to 940 from a high of 1002 .... and looks to have stabilized.
Asia and Europe followed yesterdays US market sell off to the down side.

after a big down day we could expect a retracement back up to the SPX 1010 support level which should now become resistance.

The news tape is reasonably good but I think for the day, markets will be depressed and will consolidate sideways for the rest of the week.

The range today is the shaded blue area and the wider teal shaded area for rest of week. With a bias to the down side.

The Bulls are not going to just lay down here. I would expect a bit of a fight down to Spx 970

Spy plan is to wait for retracement to 101.50 and enter a short sell down to 98.75