SP500 Hits 2923 and Bounces
50 EMA Holds
As we discussed last week, the magnet target downside would be the 50 EMA which was hit overnight in the Sept. Futures, putting a low in at 2923.75. This initial target is short term bullish, but we are cognizant of the constant overnight ramp which has been in the playbook for quite some time. Does this change our overall uncertainty and sentiment, not really. We still believe equities to be a bit complacent and in requirement of constant QE FED drip.
However, the reaction by Europe to overnight lows does force a more two way trade and as we noted in yesterdays Subscriber note, markets tend to go up up up and down down down. Last nights trade and into today are clearly representations of that and its why HFT Algos that control these things tend to probe a lot further than most think. Which is why you have to be quick and nimble if you are a short term trader.
Anyway here is a chart of the action thus far today in the SP:
For all those quick hit newbies trading in and out of Hertz stock lately, this Zhedge article may be of interest and if the market top signs aren’t abundant enough! Zhedge Hertz Article Maybe investors need to brush up on the corporate capital structure hierarchy of bonds vs equities, because many are playing with fire here.
-Magnelibra Econemotions
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