$SPY taking a big hit as jobless claims dropped less than expected. The data shows that the claims are down 3,000 to 382,000 while analysts expected 373,000. The second important news came from Chinese manufacturers and the policymakers who are unsure if the world’s second-largest economy will feel compelled to follow the global rush of stimulus action.

When one look at the $NYMO (McClellan Oscillator) we are pretty much on neutral position. A very aggressive sell day will put us under neutral position and we might start to shift into oversold territory. But one good news is that if the selling is orderly may be we will reach the lower band of the range we were stuck for the past 2 weeks, and bounce tomorrow (maybe).

$SPY 1st support is 145.50, 2nd support 144.75, and 3rd is 143.53.

$SPY 1st target is 146.13 , 2nd is 146.77 3rd is 147.60, and 4th one just for fun is 148.68.

Trade what you see not what you think.

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