Sell-Off
A big sell-off in S&Ps in the late-morning session, with S&Ps trading at 1318, after bouncing off limit down at 1316.30.
We should see some key support between 1314.50 and 1316 as these are old highs from a few days ago. Under that, we have 1310, 1308, 1303 and then the big number at 1300.
To get out of trouble on the upside, we need to get above 1325. But that would just get us to neutral.
It was a very wild morning in the futures Pit. We hit a low earlier of 1317, and then rallied back to 1335.50. Our upside goal at that point was 1338 to 1341.50. If the market had been able to trade above that level, we would have had a chance to run to unchanged.
Otherwise, it was a time to be short. Indeed, selling pressure in the market took us lower. On the floor, Merrill Lynch was the lead seller, offering at 1327 when the market was 1328 bid.
Overall, the downside dominates and the upside potential is very much contained.
Negative tone in the NASDAQ as well, with pressure on the second-tier stocks.