Friday, December 11, 2015

S&P 500 Futures are heavy this morning and below most support levels

Futures are below most support levels and are currently trading around the 100 dma @ 2023.94.

Below the 100 dma, there is some noise on the charts around 2012.

2 causes for weakness this morning:

1. Crude oil continues to get rocked due to oversupply issues and is hitting a multi year low as we speak.

2. The reality of the Fed meeting next week.  Often a leading indicator of equities, the junk bond market (JNK) is hitting multi year lows.

$34.09 is the low from 2010:

Playing for the bounce at support levels after sharp sell off's has been working recently, as we caught a nice trade Wednesday and sold at the top.

I would prefer an entry point of 2012-2014, but JNK and /cl (crude oil) are my tells this morning.

If JNK can hold that $34.09 level and crude stops bleeding, futures could snap back to 2032.

Through 2032 with some confidence and volume gets us to the 150 dma @ 2048.57.

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