Earnings Season starts tomorrow …

After the HUGE 4-week-rallye … we face a bit of “profit taking” … tomorrow Alcoa opens the earnings season.

And after this huge run up … a lot of dissappointment could be in the cards.

Even if the quarterly earnings are ignored, the outlook could hurt prices a lot.

What should we expect? A 38% retracement (BULL case) a 50% retracement (Positive case) a 61% retracement (Normal case) or New Lows (BEAR case).

Means:

S&P should see … 777 … 756 … 735 or even test/undershoot 666 …

FDAX should see … 4123 … 4022 … 3919 … or even test/undershoot 3588

These levels are as long valid as we don’t trade NEW highs for the current move.

My best guess is the normal case

Take care!

Tags: earnings, outlook, retracements

This entry was posted on Montag, April 6th, 2009 at 22:10 and is filed under FDAX. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.