The little IH&S that was setting up yesterday afternoon might still be in play. Keep an eye on 1838.50.
The trouble in Iraq is one of those game-changers. We’ll see if TPTB decide whether or not it matters. Lousy retail sales…but, since when does economic data matter to the market?
Here’s a look at SPX now that the market is open.
UPDATE: 9:50 AM
Another absolutely non-sensical day from a charting standpoint. Remember when breaking a significant low used to mean something?
What could turn things around like that? Here’s the culprit…about 200 contracts of NKD, nominal value around $15 million. In this bot, NKD drives USDJPY which drives ES (140,000 contracts, nominal value $13.5 billion in the last hour) which drives SPX.
Welcome to the wonderful world of algos…where the tail not only wags the dog, it makes the dog its bitch.
UPDATE: 1:55 PM
Downside after all…led by the 10YR (hitting channel resistance and an important .618) and the USDJPY (approaching its SMA200 and a .886 at 101.57.) NKD reaches channel and Fib support at 14,835.
SPX has dipped below the TL connecting the 2011 top to the .Dec 31 top, but approaching a combo .786/.886/1.618 of support at 1926.77.