Hello Everyone,
Quick comments: We've been discussing how the CPI data on Thursday could be a catalyst for the market, and not surprisingly it came in hotter than expected and the market sold off from that. Also technically the SPX was at a resistance zone and at a logical place to pullback from regardless. This morning the market opened lower, then rallied for the 1st hour with the SPX testing yesterday's high in a perfect double top (see the 5 min chart of the SPX), that was a good place to take some hedges or reduce longs. Then mid day while the market was stable the St. Louis Fed Pres Jim Bullard Says Fed Should Be Open To Considering An Inter-Meeting Increase, which was a catalyst for the market to sell off from that point. The SPX sold off to the bottom of a support level we posted mid day and below that major support remains at 4450. The QQQ were hit hard and the early morning bounce failed exactly at the 200 day MA. For IWM it stalled right at previous support/turned resistance at 209.
Big rally today in the 10 Year Treasury Yield finally tagging the 2% area that we've been targeting for months.
The Onus is back on the 'Bulls'
Matt
