It was a net bearish Fed day, the SPX settling -0.9% to 4402.
sp’weekly1b
Summary
SPX: as things are, we’re net lower for the sixth week of eight, -48pts (1.1%). Weekly momentum is increasingly negative, and will be a restraint on ALL bounces into October. Soft target is the August low of 4335, and then m/t rising trend… 4260 as of Oct’2nd.
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Looking ahead
Thursday will see the usual weekly jobs, Phil’ fed manu’, Intl’ trade, existing home sales.
Earnings: DRI, FDS, SCHL
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Final note
It was a distinctly annoying day.
Yesterday I noted…
The cautious will wait until 2.05pm.
I also noted ‘If I’m bold, I’ll re-short 4460/70s’.
The SPX printed 4461 in early morning, and you can see a few spiky candles around 10am. I decided to wait.
2pm saw an initial cooling wave, and whilst there were a rebound… it failed. There were further bounce attempts, but all failed… ending broadly lower.
I’m annoyed. Not with the market, but myself.
I should have at least went 50% short in early morning. I’d have made something out of today. Instead… nothing.
The daily candles bode bearish into early Thursday.
The notion of ‘chasing lower’ ludicrous, and I won’t do that.
I hope your day was better.
Goodnight from London