Wednesday, August 31, 2016

S&P 500 Showing Cracks Ahead Of Friday's Jobs Number

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*We pointed out Thursday a key level that SPY was toying with.
*Threatening this line again is showing S&P 500 cracks ahead of a key report Friday.
*If the jobs report is strong it can lift markets but the overall down trend can set in thereafter especially if we continue to close below this key level.
*If the jobs number is weak the market can go down on disappointment.

Quick Review
We said in the premarket on Thursday, "If the market were to close below 217.68, it is likely a confirmation that the story has changed."
The market did confirm and close lower that day and the next day.
On Sunday we said, "We'd expect the markets can hold up this week and wait for jobs on Friday."
From the open Monday the market then jumped almost a full SPY point.
That said the market reclaimed its mini downtrend. Today is another close below the key level we pointed out.
Technicals Into The Jobs Number
Here's the SPY chart.
The last two jobs numbers saw the market jump. We show the most recent jobs number August 5th. Thereafter the markets have barely held up.
Since then the breakout level was tested several times and held successfully (you see with arrows above).
The tests are seeing more downside of late which is a sign cracks are building.

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Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. #in, $spy, $qqq, $iwm, $vxx, $ycs, $fxe, $EUO, $YCS, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principal especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD BESTIDEAS, ITS CONTRIBUTORS AND ELAZAR ADVISORS, LLC HARMLESS

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