Index futures were getting whacked Tuesday night for a rare change, with the E-Mini S&Ps down as much as 16 points and the Mini-Dow off by 120. There is nothing obvious in the news at the moment to indicate why this is happening, although it seems likely that something has unsettled Asian markets. Regardless, DaBoyz will try to hold this gas-bag above last week’s 2379.00 low (see inset), and to sufficiently deplete sellers by Wednesday’s opening to set up the obligatory short squeeze. But if the overnight bottom should take out a second previous low — i.e., 2376.00 recorded on May 4 — bulls could find themselves on the run in the early going. We’ll move to the sidelines for the time being, but you should tune to the chat room for intraday guidance, since the swing highs and lows created when things get a little nutty wind up being easier to predict than the tiresome oscillations we’ve experienced for the last several weeks.
