Looking Ahead To Monday

Dow futures are down big time, off 459 right now. The limit down number is 550, which we hit on October 24. Three times the Dow has crossed under the 8k mark in intra-day trading since falling under the 10k floor on October 6. So far that number has held as the markets have rallied back each time. But each time the market has failed to climb back above the 10k mark that would signify a major rally.

Monday may be the day the 8k floor breaks. If it does, all bets are off where we end up. We're in a bad recession, bordering on depression. One of those borders is the markets. A break below 8k would mean a new floor for the Dow, maybe 7k, maybe lower.

Last time the Dow futures hit limit down, the markets rallied by sheer will.

That will again will be tested Monday.