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Equity futures lower

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Equity futures look like they have got some momentum to the downside this morning. Currently, S&P futures are off 14 points, NASDAQ futures are down 40 and Dow futures are lower by 55 points. Trader that held on to their short/put play from Thursday can continue to use a trailing stop and play this morning's lower trend.

Bearish price objectives

Over the weekend I've gone back through our point and figure charts just to check their bearish vertical counts and noted the following. The current bearish price objective for the NASDAQ Composite (COMPX) is 1,900 which represent a potential decline of 7.4% from Friday's close. The bearish price objective for the NASDAQ-100 (NDX.X) is 1,650, and a decline to that level from Friday's close represents 8.9% further downside. The point and figure charts currently indicate a bearish price objective of $41 for the QQQ's and represents the potential for another 9% decline from current levels. For the S&P 500 (SPX.X) the only bearish price objective that makes current sense is the count we performed back in October which indicated a bearish price objective of 1,100 or a 10.7% decline from current levels. What might be unnerving to many equity bulls is the bearish price objective off our current bearish count, which indicates 1,040 or another 15% decline from here.

Jeff Bailey
Senior Market Technician

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