Opening Looks Ugly
05/25/2010 9:31 am EST
The weak close in the US market pushed prices sharply lower in Asia and Europe as the Dow futures were down 200 points at 7:00 am EDT. The S&P 500 should test the early-2010 lows at 1044, and if they are convincingly broken on a closing basis, the next key area of support is the 38.2% retracement level in the 1010 area. The hourly chart of the E-mini futures shows the pre-opening plunge, and while the bearish sentiment is very high, over the short term, it will not protect stocks against panic liquidation.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.