Key Levels
Upside -- 1230, 1276, 1286
Downside -- 1168, 1116, 1093
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Just 1 chart tonight, because of the circumstances anything can happen, so I think trading off pure technicals is out the window...
SPX Daily (3 year)
Notice that we've held that channel now twice. The market still has a chance to be in an uptrend, there still COULD be another big rally left before real hell breaks loose.
No doubt though, the market is in real trouble right here. We are well below all moving averages and there's very little strength anywhere.
Sentiment has obviously shifted pretty drastically in just 2 weeks. I would be careful here if you're a bear. Could we crash here and now? yes we could.. the conditions exist for it to happen. I tend to think though that we may get a surprise rally tomorrow and hold that channel and get a ripping rally out of nowhere that drastically shifts sentiment yet again and primes the pump for the real plunge.
I'm interested to see what happens to treasury bonds tomorrow. If bond yields aren't doing a rocket shot.. I would be wary of remaining short. If yields go phsyco north though, we may be staring at a real plunge into darkness here and now. Honestly though, I dont expect that, but bond yields will a good tell.
Crazy crazy stuff... should make for an interesting night and day tomorrow.
GL
CJ
1 comment:
Thanks CJ.
Unless 1050 breaks(parellel from the lowest pt on your chart),I will be sceptical Obama and boys have given up HOPE pumping the market.
I really think 1050 will be the decisive point.
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