The past week or so I have begun to feel a bit uneasy about the market action. It hasn’t been as crazy as the action that we saw in late January that led to pretty vicious two week sell off but it has definitely caught my attention. The failed breakout of the 115 SPY level has me on full alert for a break of the uptrend that began at the beginning of September.
From a trading standpoint it would be great if we sold off hard into earnings season so there would be some ammo for the upside once companies start to release their numbers in Mid October. If we are weak tomorrow I will be watching the 113.20 level like a hawk. A break below there and we should head to 112 fairly quickly.
2 Comments on “Quick Market Take”
Steve, why don’t you take the es as a proxy instead of the spiders.
Markus,
We look at the SPY short term because if we are going to make trades based on the index we will do it through the SPY ETF. The theoretical futures premium adjusts by less than a single ES tick each week so we don’t find that it affect prices short term. We will look at the .SPX (s&p) cash for longer term levels.
Steve