DIAMONDS

Lots of traders are wondering if the buyers/dip buyers are going to come to the rescue before the close and there are a few crosscurrents giving good arguments to both sides. First, the internals have remained very bearish all day with well over 3,000 more losing issues than gainers. For the bulls, the banking index opened at its lows and has been climbing most of the day since and that is usually pretty bullish. The NAZ and the small caps are performing the worst and they eventually lead the markets in direction so my guess, they close near the lows.

I mentioned earlier that I was short the Dow Futures and have been for most of the day. If one
looks at the DIA interday chart, it is pretty clear that the ETF is oscillating between its daily support at 114.44 or 11450 on the futures and 114.15 or 11420 (daily double support) on the futures.

DOW futures have some added trading benefits- a) trading with a one point spread which is far better than the SP futures with a 2.5 point spread; b) one can follow the TICKI, which is the tick on the DJIA 30 stocks c) one can also watch the action of each of the 30 components at any time and make buy or sell decisions with much more information than on the NAZ or the SPX.