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Not to much to report here on my end. As we go into the final hour of trading, I'm hoping to see some capitulation or a nice flush in price. I hold about six short positions right now, and I'd love to sell some of them on weakness. We are heading straight for a bounce and the likely place for it to occur is probably somewhere between 1275 and 1300. 

And yes, as the title of this post suggests I shorted JCI at $30.73. Coupled with VAR both of these two young trades in my portfolio are lookings really weak on the charts. 

SHORT: Chicos Fas (CHS)

 

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The bulls made another brave attempt to deliver a bounce yesterday, and failed badly again. I have channel resistance at 1334 SPX today and a break above might well be a bull trap, as both of the last two breaks were. Here's the channel on the SPX 15min chart:
The closer that SPX gets to the twin pattern target 1292 area, the less reason there is... Read more...

Economic Reports Due out (Times are EST): Jobless Claims (8:30am), Philadelphia Fed Survey (10am), E-Commerce Retail Sales (10am), Leading Indicators (10am), EIA Natural Gas Report (10:30am)

Premarket Update (Updated 8:30am eastern):

• US futures are flat ahead of the open after giving up the overnight gains. 
  
• European markets are trading -1.3% lower. 
  
• Asian markets were mixed, ranging from -0.3% up to +0.9%. 
  

Technical Outlook (S&P 500):

• Yesterday, we saw the market, yet again, give up its solid intraday gains, and finish in the red. 
• 9 out of the last 11 trading sessions have finished lower, and we are now firmly back in oversold territory short-term.
• Minor support at 1301. Significant support in the 1294 area. 
• Slight up tick recently in S&P volume levels. 
• A bounce at these levels seems  likely. A strong bounce could take us as high as 1357. 
• Closing lows haven't been seen since 2/1/12. 
• 30-minute chart shows a very strong downtrend in place with consecutive lower-highs and lower-lows.
• Confirmed the double-top pattern on the S&P daily. 
• S&P is now trading below the 10-day, 20-day and 50-day moving averages.
• On the weekly chart, we confirmed the bearish wedge pattern that we had been following for weeks. Very bearish development for the market. 

My Opinions & Trades:

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by Ryan Mallory

Today another short update since I don´t have much new to add from previous updates.

Like I did yesterday today´s technical update begins with a brief look at the EUR, since “she” is the “mainstay” for an oversold rebound of almost everything.

If the EUR does not provide assistance to the Bull´s cause then forget about some type of a bottom for the equity & commodity markets.

But barring a crash overextended moves are usually at some point corrected adjusting the “tilt” of the abrupt decline.

Today the EUR daily RSI is at 22 while the Stochastic is at 5.

 

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