Well the upthrust happened on the open and the selling couldn't be contained on 1st hour's trading today. I'll post a chart tonight to see why I said I thought it'd do this and we can see what the rest of the session shows. We have 1194 in the Spoos as a serious support level which is where bounced this am.
http://finance.yahoo.com/charts?s=^GSPC#chart1:symbol=^gspc;range=5d;indicator=sma(17)+volume;charttype=ohlc;crosshair=on; http://stockcharts.com/h-sc/ui?s=$SPX&p=D&b=5&g=0&id=p77762493168&r=3110&depth=24&listNum=&cmd=chartnotes,659|469 The technicals painted the likely scenario this am PRIOR to the news. Big traders positioning themselves for a low risk move. The move up to the 50 ma and then rejection. Now we are in a trading range between 1110 and 1030. There was a bearish candle yesterday showing the weakness at a pivot point. Lower highs had been made on an hourly timeframe. On a daily chart we had stalled. We are now at a crossroads for long term position traders.
A summary of the thread to date: Last week: Close of week just above 1100. ...with the possibilty of interest rate hikes by the FED.... Walk away from the screen or operate without stops on exchange servers at your own peril...[/QUOTE] Rates were increased. Yesterdays post after the close.. Very weak day. Low volume. Nearly an upthrust but not even enough energy for that. I figure one good upthrust then close on or near the lows to turn this supertanker back around. I just don't see enough fundamental or technical strength to go much further.[/QUOTE] Today the blast lower. SPOOS target changed to 1030 from 1023 based on the rising 200d ma. Sorry for the crappy charts I swear to make them better.....
Moderator please close this thread I started a journal here: http://www.elitetrader.com/vb/showthread.php?s=&postid=2743112#post2743112
you guys see what is happening now...first the small cap space has its volume decimated, it has never came back since the big whack we took in 2008..now tis slowly infecting mid caps and big caps...i predict soon 500 million shares on nyse will be a normal day. just you watch
The low volume on up days speaks volume of the "strength" of this market no pun intended. The market feels levitated on nothing. No real support but keeps crawling up in spite of wantingto blow through stops. We need another volatility spike to clear out the stops, make a higher low on the broader market so all the cash sitting on the sidelines as a deflationary hedge can be deployed and money can move out of bonds as well. That's what I don't get if the support is from "Open Market Operations" then it would be better to have another washout to a higher low because that would be the start of a strong multi-year bull run.