I wish I could be more positive about tomorrow but right now at 12:45 AM EDT I don't really see very much positive in any of my charts right now. On Friday the Dow put in a big red candle that looks a lot (though not exactly) like a bearish engulfing pattern On the other hand, the Dow has found support at the 12,540 level for two days running ad its indicators are now closer to being oversold than overbought.
The VIX however looks to me like it has more potential to rise tomorrow than to fall, implying stocks go lower. And all three market futures (ES, NQ, and YM) are down right now, the ES in particular down by a significant 0.43% on a Sunday gap down opening. None of this is very good. However, note that the ES is right at an important support level now at 1329. If we fall below this between now and the open on Monday, then I'm definitely looking for lower tomorrow.
Either way, the entire gestalt of the market has me feeling that the time to "sell in May" may in fact be at hand.
And who knows how the market will react to the news that the big kahuna of the IMF got caught with his pants down, literally, tonight. Not that it should make a whit of difference to the price of stocks, but lately the market has been acting more squirrely than usual with respect to news events. I guess we'll just have to see.
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