SPX technical update

The SPX had a short covering obviously as today’s market is locked in a narrow range. Basically, the FED’s rate cut is priced in and 50 BP should not bring markets higher but the prospect of more cuts might be carried out as a reason to bring the SPX to 1000/10. Although the 990 is a hurdle as well, if we go up from here. In any case, we have to come down again – the question is really how high and long does this upside correction go and last? The last 2 had a 3 day span – the difference now is that the EURUSD seems to have finished a downleg and hence turned commodities around as well, which gives more support. The Rydex around .74 is not on oversold levels, rather on a sell level. we have to wait and see how the market deals with the rate cut (and it’s magnitude). Volume is moderate so far and the VIX 13 really marked a high in volatility as expected.


~ by behindthematrix on October 29, 2008.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: