OFL: At the Crossroads Again

Earlier I mentioned that the two key levels I was watching in the S&P sat at 860 and 880. Where did the cash index close? Right under the level at 879. The futures on the same index: 885. If you remember, the big selling yesterday picked up steam when the 885 level was broke yesterday. The buyers came in on this break only to be hit into the close at lower levels. Thus, we have a support on the cash side and a resistance on the futures side? So where does this crossroad take us?

Well, I personally remain bullish but are sitting on pins to some extent as Chris Dodd has become a sell signal each time he has spoke of late. Overall, volumes on the cash were the same as yesterday but higher on the futures. Thus, one could really make a case each way. So, since I am bullish for a variety of reasons I mentiomed prior, I will look to the futures for the signal - thus my bias remains bullish heading into the quadruple witch next week.

Failed Bounce

Interesting run we just had in stocks. From the 860 level, the S&P rocketed higher bu 200 points only to now back off again. Sellers and buyers are seeing these moves and just getting out of the way. I remain bullish thanks to the major bounce overnight. I would like to see the bond though break a bit to get things motoring in stocks.

Big levels I am watching in the S&P are 885 on the upside and 860 on the downside.

New Feature: On the Fly

Starting next week, I will begin to post market notes on this site over the course of the day. The notes will cover random things I am seeing. Check back later today for a preview