Please note this is the LAST TFP letter you will receive unless you sign up HERE @ $25.00mo.
You know already the entire risk complex reversed lower today marking the largest single day loss of 2013 to date as The SPX declined 18.99 points or -1.24% to close at 1511.95, the NDX declined 42.8861 points or -1.54% to close at 2739.9893.
As mentioned in the TFP morning letter the precious metals market was extremely heavy, specifically gold which was already trading @ 1585 by 7 am. Commodity weakness was the initial indication today might be the day where downside S&P 500 supports are taken out.
|GC Daily. Under 1534 = 1485|
Sure enough as gold, silver, copper and eventually crude oil collapsed to the tune of 2% as the ES tested the 1525 level which eventually failed into 1520 about a hour after the open.
Noticeably absent was the continued dip buying bid over 1520 as the ES rolled back over into 1520 and failed.
The afternoon was basically one large 15 minute candle after another all the way into the 1506.50 low which is currently the line in sand before 1505 is tested.
We have been highlighting the 1510 ES level as support the past week which is interesting the price was pushed clear down from 1530 into a failure of this level, almost too convenient but it does not matter because the charts have been broken.
Currently the ES is offered over 1506.50, below means 1500 tonight, 1500 fails its another 10 handles of air into 1490.25. If 1490.25 fails good luck buying the dip because it might not come for 50 handles.
Currently ZB IS bid up .25% @ 143’12 and the DX is making highs over 80.20 resistance @ 80.22. These two combined forces are pushing the ES into is ledge @ 1505.
|5 min CL. under 94.21 = 94 under 94 = 92|
Crude oil is offered @ 95.53 down .72% already with support @ 95.45 and the line in sand before 94 trades its 95.21. Under 94 crude will see 92 in short order.
Gold is already down 19.20 points @ 1559, -1.20%. Under 1554 is lights out into 1520 and so on and so forth as this is not technical territory anymore, its pure margin/sell stop mechanics of trading territory. Under 1534 = 1485.