S&P Futures Tear through Mini-flash Lows of 1391.25 after White House debt talks fail
This post builds upon our post from December 26th.
The chart on the left is solely mean’t to show how much significance the 1410 level has gathered since the market recovered following last Thursday night’s drop.
Under this level means we move into gap territory down into 1391.25 as the lower tail of thursday nights 1 min candle is essentially a air gap.
The air-gap we reference above closed this afternoon as the debt talks failed to manifest a compromise. Thus during the closing minutes of the session the S&P futures failed the 1410 level into 1399.75.
Once 1399.75 failed 97.50 became the last line of defense before Thursday’s lows @ 1391.25 became the next target. Sure enough they traded and so did 1382.25’s before it was all said and done. You see how the product of a thin market combined with political ignorance can create a nasty tape.
Our markets are most susceptible to drastic drops in the final moments of trading due to the the nature of the contemporary market place.
|15 min ES – notice the pattern… stair stepped the price down into 1391.25 then boom. stops clobbered.|
Currently the SPY is trading for 139.30 up from the 138.55 low. Sunday will be interesting.. Below 82.25’s 1373.75 becomes the next event horizon.