SPX Sending Mixed Signals

posted Oct 6, 2014, 10:54 AM by Katie Shook

Last week was a wild ride with volatility definitely back in the picture.  It appears the votes, while not all counted, are giving a strong indication of where this market is headed.  And it may not be pretty.

The Thursday reversal was very strong, but the Friday follow-through failed to erase Wednesday’s losses.  The weekly pattern, as a result, is a little more encouraging than the daily pattern.  It’s possible we put in  a ‘low’ for a little while last week.  However, the jury is definitely out.  The daily patterns are less convincing.  We’ll need to see a close above 1991 this week — or better yet, above the 2000 level again.  That would likely get buyers coming back to the table.

It’s difficult to imagine a world where the indexes can continue to climb to all-time highs while the underlying positions are so shaky.  It remains to be seen if this is the beginning of a bear trend just another speed bump.  I’ll be listening closely to the Fed Wednesday — and I’m also interested to see how earnings season shakes up.  (My secret opinion is that – since central bankers across the globe are willing it so – this thing still has legs to go higher).

Daily Digits

Daily Digits 10-6-14

Weekly Estimated Range

Weeklies 10-6-14

IMPORTANT DISCLOSURE INFORMATION Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Littlejohn Financial Services), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Littlejohn Financial Services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional adviser of his/her choosing. Littlejohn Financial Services is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Littlejohn Financial Services' current written disclosure statement discussing our advisory services and fees is available for review upon request. 
Comments