While I traded my SPXU a bit later today, I'm back to holding it for Friday. Very possible to see another gap down to open. I believe we are retracing October rally, current fundamentals support that. Oct positives are either revising down or more a result of Japan coming back online than US economic improvement. Inventories, orders, backlogs are all too low. I'm watching Friday closely, may be the end of the swoon or just the beginning. I'm expecting <1155 during the day, if it closes below that I believe further downward action is likely next week. Our Fed or the ECB may try to kill this trend with QE or bond-buying talk, much like talk today of Germany considering Eurobonds. As usual, all talk no action. That's my outlook. GL all.
"The Federal Reserve told the 31 largest U.S. banks to test their loan portfolios and trading books against a deep recession and a European market shock to ensure they have enough capital to withstand losses. The most severe test scenarios outlined by the Fed today include an unemployment rate of as much as 13 percent, an 8 percent drop in gross domestic product and a 21 percent plunge in home prices."