• SP 500 Market Analysis 8-24-15

Technical Outlook:

  • SPX is seeing a disaster sell-off taking place right now. 
  • Every support level we have been watching of late has been shattered. Support at the 1900 level also looks to be challenged here at the open. 
  • Consider this, SPX is looking at going under 1900 today, when at the close last Monday it was at 2102. 
  • THIS IS NOT THE TIME TO BUY THE DIP, BE THE HERO, TRADE BIG, OR CATCH THE FALLING KNIFE…..PERIOD.
  • I say that because, fortunes are being lost, and this is not a typical market scenario where you should be looking to buy value. Instead this market is acting as if it wants to teeter on possibly crashing. 
  • With that said, there will at some point be a massive rally, but that could happen after the market drops another 1%, 5% or more than 10%. The point is, let the market show you FIRST that it wants to bounce. Don’t force your will on this market. 
  • The October lows after 1900 is the next support level for the market, at 1820 on SPX. 
  • VIX will easily see the 30’s today… possibly even the 40’s. 
  • T2108 hit 18.1% on Friday. Very good chance it hits October’s lows at 13%. 
  • Today SPY is looking at its 10th straight gap down in the market. 
  • It stands to reason at this point that the Fed will not raise rats in September – possibly not even this year.
  • Lots and lots of volume pouring into the market right now. More than anything we’ve seen since last October. 
  • A view is emerging that a rate hike in September might be off the table. Today’s Fed minutes may shed more light on this area. 


My Trades:

  • Did not add any positions yesterday.
  • Did not close out any positions yesterday. 
  • 100% cash
  • I was out of this market on Thursday and I haven’t gotten back in yet. At this point trying to swing-trade the market with the HUGE overnight gaps, is a risk that is absolutely not worth taking. I am looking at not keeping any trades overnight, for now. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 8-24-15

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