The Stock Market Blows

Peter Tchir, of TF Market Advisors, said it best today: “I can’t get the Amy Winehouse No No No song out of my head. No ECB. No IMF. No Fed. No PSI. No balanced budgets. No QE.”


Bong full of hopium Europe/Fed.


Tuesday Thoughts

Markets took a hit yesterday.  The S&P finished down -1.5% to finish at 1236 well within the trading range from last week. So this is not a make or break level here but it was a significant sell off and bullish momentum is quickly fading especially with the financial sector showing major weakness here.  Time to sit back and watch the direction unfold.  I will be searching for bull and bear flags throughout the market today.


Resistance: 1,249, 1,260, 1,277, 1,292
Support: 1,230, 1,216, 1,205

From yesterday:

Watch for a consolidation in gold.

Yup. Big time break down from the pennant pattern. 

Watch the Euro (XEU). On a weekly chart the Euro is at a key level of support. What’s going to happen?

More selling but holding support.

1. Investors will speak ( starting with todays sell off)

2. Credit ratings will speak

3. The people will speak

Will there be rejection off of the 200 SMA on the SPX?


Will there be a downtick in bullish momentum on the MACD?

Yes on the MACD histogram and on the stochastic.  Really looking for a close below 1227 to get bearish. 

What is the VIX doing?

The VIX closed down and so did the market.  Indicating a disagreement between the VIX and today’s sell off.  The VIX is currently testing previous lows in a falling wedge pattern.  Continue to watch this unfold.  VXX may become a great trade in the coming days. 

Also, please add a 50 sma to your 401k charting style tonight.

I forgot.  Please do this tonight.



Tuesday Front Runners:

FOMC Meeting expect the market to sensitive to it.

Watch for significant activity in the financials

Watch for a sell off below 1227.

Any new VIX developments?

Watch for SPY over 125 attempting a gap fill and therefore a lower high ( easier to see on a 5 min chart).

Also, please add a 50 sma to your 401k charting style tonight.