(click to enlarge)
The reasons why the market sold off are largely irrelevant at this point. The damage has been done. I guess it’s fitting that it might be incompetence. The world is starting to blow up.
After the long uptrend was broken, and the support at 1180 was broken last Monday, the downtrend was defined as I outlined in my post yesterday Downtrend In The S&P 500: Won’t Be Long Now.
Now you’ll need to see something like 1190 basis the June’s to break the downtrend, and that isn’t going to be for a while – it’s 70 points away.
Any rally to 1170 – 1180 in the June’s, sell the living hell out of the reversal or buy long-dated out of the money puts, turn your TV’s off, and listen online (and free) to the new CD from Peter Gabriel, Scratch My Back.
You can get the chart yourself. The ticker for the S&P 500 futures contract is SP_M0.
SP = ticker for S&P
M – month symbol for June
0 – Zero, for the last digit in 2010
Notice the underscore between the ticker and the month – it’s needed.