Weekend Of Uncertainty Ahead

In recent weeks the markets have seen civil unrest in the Middle East, vastly increasing oil prices and now the third largest recorded earthquake since 1960 hitting Japan. It is too early to say what the ramifications of the earthquake will be, but early reports suggest that the areas that took the biggest hit were industrial and agricultural so the damage might be limited. Tellingly, the markets took their worst hit since early September yesterday, with all three averages closing below their 50 DMA. The selling was widespread and, though the price of oil dropped, it did not help out equities markets.

Yesterday's hit to market averages placed them squarely into oversold territory, so encouragement from any area might result in a short-term bounce. Of course, the global markets are trading lower currently after news of Japan's earthquake, but the selling is contained so far. U.S. markets are also suffering slightly, with the DOW down approximately 50pts.

The day of rage in Saudi Arabia turned out to be a day of “much ado about nothing,” and in Saudi Arabia celebrating its “Day of Rage”," oil prices dropped below $100/barrel
The February Retail Sales report was released at 8:30 a.m. EST, followed by the Michigan Sentiment number at 10:00 a.m., but these numbers mean little relative to the tragedy in Japan.

Ultimately, the markets are going into the weekend with great uncertainty, so investors might considering holding tight unless presented with an extraordinary opportunity.

Today's Early Markets:
DOW Futures— down 50.00
London— down 34.87
S&P— down 400
DAX— down 71.09
GOLD— 1413.00 April
Nikkei— down 180.98
OIL— 100.05 April
HangSeng— down 365.87
DOW RESISTANCE: 12,000
S&P RESISTANCE: 1302
DOW SUPPORT: 11,880
S&P SUPPORT: 1280
$COMPAQ RESISTANCE: 2730
$COMPAQ RESISTANCE: 2730
$COMPQ SUPPORT: 2670