Economic Reports Due out (Times are EST): Producer Price Index (8:30am), Consumer Sentiment (9:55am)

Premarket Update (Updated 8:00am eastern):

  • US futures are down yet again, nearly -1% on JPM trading losses. 
  • Asian markets are about -0.9% lower. 
  • European markets are trading about -0.8% lower. 

Technical Outlook (S&P):

  • Despite a respectable bounce early on, yesterday’s market was unable to hold the bounce and finished significantly off of the day’s highs. 
  • Even with the bounce yesterday, we finished right on resistance at 1357 on the S&P. 
  • We now have the year’s first significant lower-low in place, which essentially ends the longer-term trend higher that we had been on. 
  • 1340 becomes the next main level of support, which represents the March lows. 
  • Though we’ve seen plenty of sell-offs in the market of late, and are well off of the recent highs, the bears have, nonetheless, been rarely able to close at the day’s lows, and avoid the bullish buy-the-dip mentality that is pervasive in this market. 
  • We also confirmed the double-top pattern on the S&P daily. 
  • The triangle that we spoke of before has been broken out of to the downside on the daily S&P. 
  • S&P is now trading below the 10-day, 20-day and 50-day moving averages.
  • The market’s whip-saw action of late has created a convergence of moving averages (10, 20 & 50 DMA’s). 
  • The previous trend-line off of the October lows has become resistance for price action on the underside. 
  • 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:

  • I’m viewing this market with a sell the rip, cover the dip approach. 
  • The problem is, that this market has been quick to move to the downside, and not a lot a lot of opportunity was afforded to get short. I’m careful not to to be chasing at these levels. I want more of a bounce first. 
  • Sold AEIS at $13.24 from $13.25 for a slight loss. 
  • Short UPL yesterday at $20.93
  • Remain long USO from $36.74, AAPL at $571.44

Chart:

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