The one day wonder reversal day yesterday where the Federal Reserve was given most of the credit for the rally is simply vaporized today.
Where was the Fed?
Today it was everything from Ebola to comments by Mario Draghi in Europe to the global economy and so on.
Whatever they can find to place blame is where they go. In reality, the market had more work to do on the downside and today it was working hard.
We should be coming into near term support, not much lower from here. Since I can derive the most accurate numbers using the futures (ES Mini S&P Contract – ESZ14), I can tell you that 1915 is extremely important and this level was reached and breached in the overnight session. This could turn out to be good near term support, but we won’t know until tomorrows session begins.
Beyond that, 1907 is the next level of support. If these levels break with any conviction, we’ll have to continue calculating but for now that should suffice.
The market is designed to fool everyone. You’ll notice there is nothing but bearish sentiment right now, with CNBC doing segments on how to protect yourself from a market decline. News flash, the decline started weeks ago.
Everything you need to know is found in tonight’s video