Futures are currently down 240 points on the dow. I'll reiterate again, if this market takes another dive, especially today, what could possibly save it? The fed isn't about to cut rates another percentage point. In fact, I think yesterday's rate cut effect is actually partially responsible for this morning's losses. The Yen is currently trading at 105.16 and the Euro went from 1.44 to 1.46 - Anytime we see a rally in the yen, it reflects an unwinding of the carry trade.
To find a POSSIBLE area of support for the dow and S+P, I would look at yesterday's futures - they essentially were trading as low as 11,400 on the dow, and 1256 on the S+P. Which represents a drop of 500+ points on the dow and another 60 points on the S+P. Not saying we'll get there today, but it doesn't look too difficult given the futures we're seeing. Even at that level, I wouldn't call us anywhere near a bottom - the futures only stopped falling because of the fed rate cut.
I will probably short any sudden signs of strength we see today - i'll keep u posted.
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