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The market had a weak day that just kept on sliding lower and lower. This morning in our Trading Room, a member asked:
lsxxxxx
Hey guys, it seems as though the last 2 times we were here at these levels, a buyer program kicked in..... does anyone have an opinion on that?
This weekend, in my Market Forecast, I said, "If the market goes below the recent lows again (SPX 850; Nasdaq 1500), they may not hold this time." I also answered in the Trading Room:
HappyTrading
market
previous times VIX was toppy; VIX intraday charts still have not shown tops yet. I don't think the support is going to hold this time.
HappyTrading
SPX
could go to 800 before finding support.
HappyTrading GOOG
looks like it'll test that $280 today.
Indeed, the market continued to slide all day and collapsed in the last hour. SPX barely closed above 800 and GOOG went below $280 briefly and managed to close 18 cents above. You can see these market comments and discussions during day when they are made in our Trading Room. You can also get my full Market Forecast articles on the weekend by subscribing to my Premium Articles. To sign up, please see our Premium Services Page. Bagger Vance also cashed out on some great trades today.
Most of the ultradshorts were up, way up!! These are great trading tools in a precipitous bear market: DUG +11.28%; SRS +27.55%; EEV +15.94%; SKF +21.37%; FXP +15.58%. The Dow was down 427.47 points; Nasdaq tumbled 96.85 points; SPX lost 52.54 points:
Techs were really weak: INX2 (Internet) -7.87%; SOXX (semiconductors) -7.71%; BTK (biotechs) -5.24%. Commodity-related sectors didn't do much better, some even worse: XME (metals and mining) -10.93%; GDX (gold miners) -4.86%; USO (oil) -3.37%; MOO (agriculture) -9.71%. XLF (financials) slumped -10.47%. FXI (Chinese ADRs) dropped -8.24%.
SPX
SPX lost 52.54 points to close at 806.58. It penetrated below 850 and closed just above 800. The MACD is displaying a new bearish crossover.
Nasdaq
Nasdaq tumbled 96.85 points to close at 1386.42. Its MACD and daily MAs were down.
Both SPX and Nasdaq broke below their support levels. We might get some bounces tomorrow, but, I'd first wait to see if VIX finds resistance at 80. SPX and Nasdaq are showing newly created bearish formations in their daily MAs, and, their MACDs are displaying new bearish crossover. This market could go "much" lower! SPX has a support around 750, but, it's a soft one. Nasdaq could find support around 1300. Let's first see how the market deals with SPX 800 tomorrow.
Good night and HappyTrading! ™
