Market Weakness May Continue

posted Sep 30, 2014, 1:04 PM by Katie Shook   [ updated Sep 30, 2014, 1:18 PM ]

If the futures markets are any indicator, the world is pretty uncomfortable with where the SPX is right now.  Last week’s low has already been taken out indicating a continuation of last week’s downtrend.  (Sorry gang, Friday doesn’t appear to have been enough to negate the bad news).

Today will be interesting given the news that Bill Gross jumped ship on PIMCO.  I have no idea how the largest bond fund in the world will fare after this.  It’s a big enough deal it could have sway over the bond markets though.  Liquidations are already occurring.  This additional supply on the marketplace could even have an effect on rates.  When your funds are measured in Trillions them’s QE type numbers.

The number to watch this week is 1955 or so — that’s roughly the 100-day moving average for the SPX.  Futures are all over this figure right now, so the probability we get within 10 points or so in the next two trading days is very high.  If support fails at this level we’re likely to test the 1900 level.  Talking about the upside numbers is a lot less meaningful.  Until this market closes above 2000 again, we should probably be discussing trading ranges and support levels first.

News is light this week.   Look for ISM Manufacturing data on Wednesday.  Otherwise, unfortunately, it’s likely to be geopolitical news and editorial opinions swaying the markets this week.  Hang in there!

Daily Digits

Daily Digits 9-29-14

Weekly Estimated Range

Weeklies 9-29-14

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