Market Futures Lock Limit Down

If anyone, including me, was looking for tomorrow's market to follow through with additional gains after Friday's huge rally, look again. The futures markets, which are contracts based on the future direction of an index or a security, are locked limit down. That means, by rule, the futures contract on the Dow Jones Industrial Average cannot drop any further.

The futures contract itself is not what we are focused on at TrendingTrades. What we are focused on is what this market action means. In this case, it means the Dow will most likely open down tomorrow morning, severely down.

Experienced traders may be comfortable navigating this market action, but most investors on Main Street should probably steer clear of buying tomorrow. The reality is no one knows where the bottom of this market is, and no one will know where the bottom was until after it occurs. It is folly to attempt to predict the future direction of the market. You are far better off waiting to see the markets turn, then look at buying some good bargain stocks.