Economic Reports Due out (Times are EST): None
Premarket Update (Updated 7am eastern):
- US futures are moderately higher ahead of the open.
- European markets are trading mixed.
- Asian markets were significantly lower – on average of -2.4%
Technical Outlook (S&P 500):
Yesterday’s trading session was marked with perpetual selling throughout the day, and one of the most bearish sessions of the year-to-date. Russell is the first index to test the 200-day moving average as it did yesterday. So far it has held. Volatility is rapidly increasing – above 20 and at the highest levels since December of last year. Facebook IPO comes out today and is one of the largest and most hyped IPO’s ever at $104B. How much it will impact the markets today, is hard to say, but will have a direct impact on the Nasdaq exchange for which it is listed on. 10 out of the last 12 trading sessions on the S&P have finished lower, including five straight, and we are well oversold on both daily and weekly charts. Minor support at 1301. Significant support in the 1294 area, followed by another key support level at 1275. Volume continues to increase as the market pushes lower. A bounce at these levels seems likely. A strong bounce could take us as high as 1357. Closing lows haven’t been seen since 1/17/12. 30-minute chart shows a perfect downtrend in place. S&P is trading below the 10-day, 20-day and 50-day moving averages. On the weekly chart, we confirmed the bearish wedge pattern that we had been following for weeks. Very bearish development for the market.
My Opinions & Trades:
