Dow & S&P 500 market analysis

Index futures tanked overnight and into new negative territory. We are now lower than the 2002 lows and the Nov 2008 lows. Where we will be going now remains to be seen. In the bigger picture, we may now be tanking down to 700 for the S&P with resistance at 768. However for intraday, I believe we may gap down and consolidate a bit today before continuing the downtrend with possible resistance at 730 and support at 713.

Also news is very bad now with HSBC requiring more capital to tide through the crisis.http://www.cnbc.com/id/29460216

Direction for 02/03/2009 Monday: gap down and then down

Crude Oil (USO)

Crude tanked together with the indexes overnight. Crude is now in a downtrend together with S&P and USO. 27.5 is a strong resistance for USO. Pity my order to buy puts didn’t get filled on Friday. There’s a high possibility that USO may tank to 8.40 before this long long downtrend from last July will finally end.

Direction for 02/03/2009 Monday: gap down and down