Market approaching key support — watch SPX 1080/85 — A close below this sets up another 5% leg down towards 1035 area.
Pete on my trading desk tells me he sees “some buying and short covering happening at this level in here now.”
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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Overall household indebtedness is up from $7 trillion to almost $10 trillion since 2000. On this sum, we estimate, the American consumer has an annual interest bill of more than $500 billion; a sum, by the way, that vastly exceeds his current income growth." —Kurt Richebacher
Knowing that the vote over the weekend in Greece was really a referendum on Euro membership, a majority of the Greek Parliament said yes to staying. European Finance Ministers meet again on Wednesday to solidify the 2nd bailout package for Greece at the same time hopefully a deal is consummated between Greece and its creditors this week. The Greek 14.5b euro bond that matures on March 20th is up by 2 pts. The optimism that all will be completed and contained AGAIN to Greece has yields lower in Portugal, Spain and Italy. The iTraxx Financial Index is also narrower by...
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January 28th, 2010 at 11:39 am
some buying and short covering happening at this level in here now.”
How can a trading desk tell the difference between buying and short covering?
January 28th, 2010 at 12:12 pm
Don’t worry, Barry. The market will rebound on news of the Bernanke reappointment. The only problem is that tomorrow’s WSJ will get the % bounce wrong. :-)
January 28th, 2010 at 12:12 pm
I put on an intraday long at 1080 SPX with a stop at LOD. We’ll see how that works out…
January 28th, 2010 at 12:14 pm
Can we call todays market action the Obama bounce? Last week we got the Bernanke bounce that went nowhere. What the shorts need now is more Obama speeches. My Wallmart indicator continues to show much weakness in the economy. Wallmarts Sam Stores cutting 11,000 jobs. By the close on Friday I’d expect to see the DOW touching 10,000 if not dropping below. JMOP
January 28th, 2010 at 12:15 pm
The market will rebound on news of the Bernanke reappointment.
Haha… that’s precisely why I’m too scared to be short at the moment.
January 28th, 2010 at 12:29 pm
I suggest that there is no significant support below 1,090 in the SPX and that the new leg down has just begun. Considering that we just broke the uptrend channel since mid-August 2009, it is highly unlikely that we are going to get a strong bounce again, such as yesterday. Sellers are being very assertive with their message in wanting the market lower and lower.
Here is the uptrend I’m speaking about: http://chart.ly/277ep2
January 28th, 2010 at 12:31 pm
The market will rebound on news of the Bernanke reappointment.
Why? Are they afraid the Senate won’t reconfirm him? After all, Obama’s been whipping votes for “B-52″ Ben. The Senate isn’t like the House. They don’t call the Senate “The House of Lords” for nothing.
January 28th, 2010 at 12:46 pm
Why?
Because the market has only priced in the likelihood of his reappointment, not its ecstatic joy on hearing the news. :-)
January 28th, 2010 at 12:49 pm
[...] perspective, keep an eye on 1085 as a closing level on S&P 500, FusionIQ CEO Barry Ritholtz says. “A close below this sets up another 5% leg down towards 1035 area,” he [...]
January 28th, 2010 at 12:50 pm
Just heard on CNBC their announcement of today’s forthcoming “Halftime Report” before commercials chimed in. Then Maria mentioned before the cutoff, “on the lows of the day…” with some tone indicating continuation.
The paranoid would wonder whether there is any connection between announcing the Halftime Report coming up “on the low of the day” and whether there is any cause for concern at CNBC (i.e., portrayal of a suffering market). Wouldn’t you think any media should pretend to be unbiased and present any report whether it’s on the highs or lows of the day? But that’s the end of my rant.
Just struck me, maybe overreacting but perhaps also a smoking whisper.
January 28th, 2010 at 1:06 pm
How can a trading desk tell the difference between buying and short covering?
By seeing if any of the trading involves Overstock?
January 28th, 2010 at 1:33 pm
dollar is rocking and copper has crapped out, china announces they have way way too much steel sitting on the docs, i sold my longs last week, went short yesterday, europe is bye bye bye time
January 28th, 2010 at 1:39 pm
fwiw, the q’s have cracked badly and they are trying to hold the market up thru the xlf, if the financials go down, a close of gs below 149, katy bar the door
January 28th, 2010 at 2:05 pm
Close below yesterday’s low and it’s a goner. Otherwise, range bound.
January 28th, 2010 at 3:28 pm
What’s gold trading at relative to SPX? (h/t MEH)
January 28th, 2010 at 3:46 pm
Sweet bounce right off that level . . .
January 28th, 2010 at 4:02 pm
— watch SPX 1080/85 —
where did the 1080 come from?? It wasn’t there in the original posting… Not that it matters, because 1080 too will be broken eventually
January 28th, 2010 at 4:04 pm
tomorrow is last day of month which will finalize monthly candle…
http://singerprofitcharts.blogspot.com/2010/01/indu-monthly.html
re: 1085 – watch for false breakdown and then rebound back into the range… rough close today…
January 28th, 2010 at 4:32 pm
where did the 1080 come from?? It wasn’t there in the original posting…
I think it was was a birth/death adjustment thing. You wouldn’t understand. Quantum statistics. ;-)
January 28th, 2010 at 4:51 pm
This is a head fake. All the bad news is out now. We had worse than expected unemployment news, and Obama/Bernanke are done. If Obama shuts his mouth for a while, we’re on our way SP 1200!! On another note, is there a more stupid song than TikTok? It’s like a female Kid Rock.
Transor: Quantum statistics….heheeehee…
January 28th, 2010 at 7:15 pm
Predictions and opinions have a value of “Zero”…. trade what you see – not what you think…
January 28th, 2010 at 7:23 pm
Mitch@TBP….
Yeah, I noticed that too….the post changed.
There were too many like minded Wall Streeters looking at the same precise level….stops were run below there to trigger sell stop orders from the masses…only there was no immediate break down, so everyone got ‘nervous’ and back pedalled a bit….
Beware of “technical calls” from people who are not really technicians…
January 28th, 2010 at 8:25 pm
I’m Up on my individual purchases since last March. Got out of my Mutual Funds in the IRA-401-K and moved into individual stocks. My own “individual stocks” have weathered this one better than the “Mutual Funds” that I move out of. (all high quality…fixed income..recommended trash) by the “designated Fund Manager.”
Anyway….I hate being in this MARKET at ALL! I’m moving CD’s around and heavily in cash …which is taking a lot of management to earn anything above “ZERO INTEREST RATE.” Canadian Banks and a couple of Americna banks are giving something above “ZERO” as long as you “open a checking account” and go into thir MM Accout …and the rates are above ZERO…but one needs to call them every three months to fight for the rate.
My individual stocks were “through the roof” since March…and they are pulling back. But, I switched into only DIVIDEND stocks…so I can ride it through. Even if dividends get cut…they aren’t going to be as bad as ZERO INTEREST RATES from BERNANKE!
It’s going well for “preservation of capital of what I have after the GREAT IMPLOSION” as Bush II went out the Door! There’s hope…if one can be nible in their conservative view of investments… I guess…. worked so far..but someone is waiting in the wings to take the rest that I own. I’m just not gonna’ let them do it. :grin:
January 29th, 2010 at 3:05 pm
[...] noted yesterday, the 1080-85 level on the SPX was THE crucial level traders were [...]
February 1st, 2010 at 7:14 am
[...] week, we warned about key support at 1080-85. That failed the next day, and the thought process is we could see a further correction to [...]
February 4th, 2010 at 10:07 am
[...] Watch 1085 on SPX (January 28th, 2010) [...]