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Wednesday, October 9, 2013

Daily update 10/9

Rather mixed at the close today.  SPX and a few indexes were up while the COMPX and a few others were down a bit.  Here is the daily SPX chart.

Since SPX did not close below yesterday's low we did not confirm the break of the 100 SMA.  There was a slight increase in volume today.  The market sold off pretty hard this morning, but found a low when the Dow hit its 200 DMA.  This looks like a bounce setup.  Price is extended on the down side and we had a VIX spike.  Will the bulls show up tomorrow and take it higher?  SPX broke down from a consolidation yesterday that formed above 1670.  If we do bounce from here that area could provide some stiff resistance. 

Yesterday seemed to be the first day the market started to worry about what is going on in Washington.  I don't think the market will make a long lasting low until things get settled there.  I have not seen any sign that is close to happening yet.  The only other thing that could turn this into a low is much better then expected news on the earnings front.  There is likely to be news driven volatility ahead.  Be careful.

Chart practice has been update with LEG the stocks tonight.


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