After trading in a 57.00-handle range that trended lower in the overnight session, the S&P 500 futures opened Wednesday’s regular session at 3321.00, down 59.25 handles, and went on to print the daily high of 3328.25 in the first half-hour before selling off down to 3275.25 for the morning low just after 10:00 CT. The futures did rally to a late morning high of 3303.25 before slipping back in the noon hour to a new low at 3270.75.
The afternoon saw a grind higher to a late session high of 3298.00 before selling hard into the close making a daily low of 3260.75 before settling the day at 3269.50. down 110.75 or -3.45% on total volume of 2.5 million.
In terms of price action, it was all about selling the rallies.
In the Tradechat Room
The MiM had a small buy at the 15:50 reveal but the market had already decided to sell into the close at 15:35.
It’s all bad news in the USA and Europe, so where is it good? China, only about 20 new cases a day, that’s amazing. Australia is over its 2nd wave and opening up. India was adding more cases than the USA, but has turned the corner on the first wave and is now lower. There are areas out of phase with the USA and Europe but until there is a vaccine, more to come.
To use our table, go to https://t2r4.com/cv19/views. Each column is sortable and if you click on a cell you will get a time-based chart of the state.
Wear your masks! Stay home! Take your Vitamin D!
Chart of the Day
SPDR S&P 500 ETF Trust (SPY)
A risk-off day around the Globe.
Most Indices are down more than 3%.
SPY gives the next downside target of 26.04.
A close above 337 gives a buy signal.
The S&P needs to hold above 3252 in order not to fall another leg lower.
October 29th Stock Market Crash Reunion
I hope the stock market can come to its senses but that may not happen until all the votes are counted. I just hope between now and then that things level off and don’t crash. Today is the anniversary of the October 29, 1929 stock market crash that led to the ‘Great Depression’. I want to make something perfectly clear, I am not calling for a depression but I am very concerned about how the new ‘COVID19 Lockdowns’ will affect the economy. It will be very hard to keep stocks up if more people start losing jobs. I think Crude oil is going to $25.00s or lower and gold and silver may also start going lower. Let’s face it, the S&P stock market has been on a roll since the 666 credit crisis low and despite the shakeout and COVID19 low in March things still seem a little uneven.
Our view is to remain cautious. Can the ES and NQ bounce? Sure. Will the ES and NQ hold the rally? I don’t think so. Our lean is to sell any 40 to 60 handle rally. A close under 3250 could set up a push down to 3180.
Market Vitals Technical Analysis
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As always, please use protective buy and sell stops when trading futures and options.
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