S&P 500 moves directly into 200-day MA resistance!
A quick note here to take a shot shorting the S&P 500. Thanks to the Fed, the market has plowed directly into 200 day resistance with almost zero pullbacks in over a month. Today the S&P took a valiant shot at breaking through the 200 day MA but seems to have failed without actually reaching it.
A few things I am watching that support this idea: the performance of financials and oil. Financials tend to lead the market in all directions and financials have been lagging since yesterday. In the past 6 months, oil has been tightly coupled to the S&P 500 (a correlation that does not always exist) and we see it potentially failing its breakout at $55.
I think we can short the S&P 500 for a trade between 2730 and 2740.
Target: 2700
Stop: 2746
A few things I am watching that support this idea: the performance of financials and oil. Financials tend to lead the market in all directions and financials have been lagging since yesterday. In the past 6 months, oil has been tightly coupled to the S&P 500 (a correlation that does not always exist) and we see it potentially failing its breakout at $55.
I think we can short the S&P 500 for a trade between 2730 and 2740.
Target: 2700
Stop: 2746
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Calling it a target reached here as we are within 3 points of the target. My guess is we will see further downside over the next few days.