Today The Market Became Lucid As Reality Set In (SPY)
|5 min S&P futures|
Well well well what do we have here? A trending down day without taking the escalator up post ‘profit taking’, hmm this is something worth noting.
In all seriousness we have not had a sustained down day (specifically in the NDX) of -2.5% or more in quite sometime. And no i do not think this is simply profit taking, this is the positioning of funds and banks ahead of the debt ceiling deadline. Delta hedging and or puking,
whatever you want to call it is the culprit.
As for news flow today, much of the same with a greater emphasis on ‘veto’ and or the President might have quit and went on vacation because there has simply been to much work and not enough play in the white house this past week. he first hour of today we had non stop stelling without much interruption, this is something new to write in your trade journals about. Maybe you can show them to your kids late in life when they wonder why it looks like 1970’s Cuba in the US.
As for the technicals, the spoos came into this morning session with fairly flat to downward price action, though once the SPOOZ (S&P500 futures) broke 1325 the bids began to disappear all the way down to the 1320 level were some bottom pickers were left with a hand covered in crap…The spooz traded down to the 1310 level in a descending triangle, consolidating over MOST of the afternoon until the last hour hit with a break of 1309. This last leg down sent us below 1300 for the first time in a few weeks.
Commodities such as silver and gold remained quiet as crude oil took a dive below 98 with conviction further solidifying the equity/crude correlation.
|CRUDE 5 min|