SP Futures Hourly Chart at 3 PM and Short Term Indicators After the Close

As a reminder, tomorrow is a stock options expirations, so manipulation of the tape in the short term at least is the order of the day. This may explain some of the recent bounce in equities despite the poor economic news.

We also get some interesting economic data including the long term TIC flows, Capacity Utilization, Industrial Production, preliminary Michigan Sentiment for May, Empire Manufacturing and of course the CPI.

If we get a solid break to the downside, expect a marked increase in 'hysteria.' This will be the time for a trader to keep a cool head. Rants are fine if they help you release stress, and they can be fun, but ranting does not put money in your bank account and can turn into an emotional crutch, a bad habit that distracts you from seeing valuable information with a clear head.

The short term indicators have been updated after the close, and a daily SP 500 chart with the moving averages has been added. The SP 500 is at a key support level.

Here is the daily SP 500 Chart with an Important Observation on the Moving Average

Whither the Rally? Three Short Term Stock Market Indicators

SP Monthly Chart and Short Term Indicators

Big Support has been broken and the SP is dropping hard to the nearest support.

Market is becoming short term oversold again.

Non-farm payrolls coming out on Friday could provide a catalyst for a panic leg down. We may get a short covering squeeze before then.

Watch resistance and support on the daily and hourly charts.



Bullish Percent



McClellan Oscillator



Volatility Indicator (VIX)

SP Monthly Chart and Short Term Indicators

The SP 500 is on a critical support level.



We're getting very close to the point where we either get a technical bounce, or the stock markets start breaking down dramatically.



Keep an eye out for one more plunge down and then a short covering rally. If that rally fails we could see a continuation down in a crash, albeit one in slow motion.

A technical bounce here is a higher probability but more downside is very possible.