What You Need to Know For Monday the 28th
CME - S&P 500 INDEX (Oct)
Daily Intermediate Trend (3 Months): Neutral to Negative
Friday's Close: 1158 (-3.18)
Ways To Play This: ETF (SPY,SSO,SDS) or Managed Futures
Early Friday morning around 10:20 a.m. we said don't get excited when the S&P 500 was up 10 handles and sell financials if you were long. Well the S&P closed down 3 handles and the market had its worst Thanksgiving week on record, so much for statistical based theories.
S&P 500 UPDATE: Another extremely bearish week for U.S. Stocks, as the S&P 500 Index has fallen an additional 55 points on top of the 48 points from the prior week. As we warned entering this week, our key support at 1224.00 failed to hold on a weekly settlement (Friday's close), last week. Recall two weeks ago, we stated, “A settlement on a Friday below 1224.00 could seriously interrupt the bullish market action of the last seven weeks”. At this juncture the market has lost 60% of the gains from the 220 point rally, a month ago. Even our 1188.00 region, which held for a couple of sessions, relented on Wednesday, as the psyche of the Bulls is taking a hit. Volatility remains high therefore this market can turn positive quickly, but it will take a weekly (Friday) close above 1225.00 to turn the trend bullish- tall order.
No light at the end of the tunnel for Europe yet. Events just in the last 48 hours Europe Saga:
-Fitch cut Portugal's rating to junk status. -Moody's cut Hungary's rating to junk status. -Italy had another horrific bond auction this morning, sending yields higher. -Spain has rumors of seeking financial aid. -Belgium got downgraded by S&P and Fitch. -German yields are rising.
Don't expect much from Merkel and Sarkozy over the weekend. We have neither a bullish or bearish stance at these current levels. Right now we are more concerned about preservation of capital than missing the next move.
For our Free S&P 500 Newsletter visit www.thechartlab.com or visit www.chartlabpro.com for our new automated charting platform that aims to help the average investor understand their stocks better.
For readers that have been following our last couple of risk articles we have update our Risks to S&P 500 Chart.
For our Free S&P 500 Newsletter visit www.thechartlab.com or visit www.chartlabpro.comfor our new automated charting platform that aims to help the average investor to know their stocks better.
