Good morning all. Here are today's Tom's view on the market.

"Good morning,


Here we are again, testing the 1100. If 1100 fails today then we may quickly see 1090. I mentioned last week why I was bearish, and I see no reason to change my mind now.



Today is the anniversary of the end of the 1987 crash collapse. If this is the case that we follow the same kind of pattern of 1987 crash, then today may see much lower prices, and Thursday may then see a strong move higher. That is pure speculation right now, but nevertheless an interesting argument as the short term cycles suggest this may be the case.



From a technical perspective there is more merit in suggesting that 1090 will be more important support than 1100. It is theoretically possible that the bulls will make a last stand at 1090. IF so it will be bullish if the market can regain 1108 later in the week. I give this scenario low odds as my medium term cycles suggest that the market may be under intense pressure until the end of November. For those of you who watch Bloomberg in the weekends, you will know I was on the Money Show last weekend suggesting that chart wise we may see a low around 970 by the end of the November.



So to conclude: We were at a cross road last week and the market tipped its hand. We saw an attempt to reverse yesterday and we failed miserably.



Bonds are holding up as there is some flight to safety. I am somewhat sceptical of bonds as I still see rising rates, but I hate fighting the trend.



IBM has a pivot at $85. I think the funds will use this stock to attempt to mark the market higher going into quarter end.



One thing I have not mentioned is the UK banking sector. I follow the longer-term cycles in this sector using fixed length cycles. These cycles suggest that we may be coming to an end for this bull cycle and could see a decent correction into the end of November. You can trade these sub-indices. There are 28 sector indices available in the UK market.



For today and tomorrow I will be watching to see if this is a one-day horror followed by a reversal back to higher prices or if the medium term trend has asserted itself.



The short-term cycles suggest that a reversal is possible towards the end of today, but the pressure may be on the downside all day.



Good luck



Tom"

morning all,from a wet wales.

Morning all, from a very wet and grey Hampshire

Not just here then the rain, morning little woman.

Morning All seems to be wet everywhere. In fact nothing looks very cheerful at all. Good day for shorters perhaps? if you were up early enough.

Time to long AAL?