Stocks fell, erasing a three-day gain. The S&P 500 slipped 18.5 points, to 1075.63, its lowest close in a month. The negative news came fast and furious this morning, Investors were hit with a triple bad economic news today: manufacturing still stinks, more people are jobless and confidence in the future is less than hoped.
I long SPX in this morning when the selloff slowed and the stock market approached its monthly low support 1070, technical support helped stocks to stop their losses. Nevertheless, pressure persisted into the close and stocks failed to squeeze higher in the final hour. I bought UPRO at 127.5 and sold at 128.5, my target is 129.87, but market was so weak all day long, so I decided to take a small gain and avoid the 'bear dance'.
The index is now close second consecutive weekly below its 10-week moving average.
Unless we see sustainable job creation, consumption will be below expectations and investors and traders will focus on economic growth. Technically, many of the indices are forming a ‘horn’ or ‘broadening top’ — an unusual but highly accurate formation most often seen at market tops.
Next resistances, 1100, 1115, 1130, 1140-1150. Support 1069 is very critical, if it is broken, the bears will take the chance to step up. In the mean time, watch 1100 up and 1069 down.
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