A Fitting End To A Brutal Month
GTW and ALTR — this is what our market uses for its proxy now? Well, grin and bear it because pessimism is running rampant on the Street. Selling continues across the equity complex and does not appear ready to subside.
After a brief flirtation with the unchanged level, the SPZ failed quickly, producing a high of only 1333. Since then we dropped to one of our support zones between 1317.50-1312. The low print is 1315. Sell Stops were triggered from the dealers below 1320 and it did not take long to trade our lows. One of the keys moving forward will be the cash S&P 500 index. On our October lows, we traded to 1306 (roughly). The SPZ only produced a 1324.80 low because it was locked limit down. Look for this cash level to trade today. If we fail and move below 1300 in the SPX, it could lead to a very volatile downward spike.
All session I have been looking for a late-afternoon, final-hour rally. The longer we struggle to gain any momentum on the buy side, the more unlikely this becomes. The pit trading is extremely whippy as traders are making markets 100-200 points wide for big orders.