The Dow was within 15 points of its all-time when the sellers ambushed the market at 2:30 New York and beat it like a drum into the close. The VIX couldn’t pierce the 14 level and spiked 8 1/2 percent in the last two hours of trading.
The chart of the S&P5oo ETF (SPY) shows how the character of the market has changed in the last week. It’s important the SPY holds the 151.20ish level where its 8 and 21-day have converged.
The macro fundamentals are squared off with the recent flow of positive economic data and a friendly Fed on the positive side with economic uncertainty caused by the sequester, high gas prices, and a market that is generally over extended on the negative. Divining how this will impact the supply and demand stocks is the road to riches!
Today’s late day swan dive in stocks, especially as it approached a landmark level, shakes things up a bit. The question is will real money sell here? Wish we knew, but if they don’t the market moves higher as what we think were fast money sellers will have to cover.
Need some good economic numbers tomorrow to take out the Maginot Line at Dow 14,164.50. Stay flexible.
(click here if charts are not observable)
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