Hello Everyone,
After the close yesterday, the futures began to weaken on geopolitical news which also led to a move higher in Crude Oil, Gold, and USD. This weakness carried over to the open with the equity markets gapping down with the subsequent bounce UNABLE to FILL the gap forming a lower high which kicked off a solid trend day down. Weak earnings from UAL and JBHT soured investors on the transports which closed down over 3 percent. I have showing the coil on this sector recently which broke down. Today's internals were horrid with decliners 4x1 over advancers on the SPX. Small caps fared even worse on the session with IWM giving back all of yesterday's gains and then some. The SPX has now retraced approximately 50% of it's prior advance and remains vulnerable here with recent earnings not inspiring buyers. The bulls really need to make a stand soon and likely will need to see relief from rates and the USD. Onus on the bulls as the LDs posted on the weekend remain a valid option.
ES range 4366-4420 roughly speaking - range broke down and now ES 4367/75 resistance support 4327/36 and 4302.
Administrative Note: I will be out on Friday 10/20
Please take a moment to look at the trade ideas.
