Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Today was the upteempth day of a flat or gap up open, that was faded in the past few weeks. That person who buys futures overnight sure has deep pockets because he can absorb a lot of losses. While the losses remain orderly they are certainly adding up…. the S&P 500 has now fallen to the 50 WEEK moving average. As you can see this was not an absolute level of support during the spring correction but an area from which the market ultimately bottomed. That need not happen this time around but it will be interesting to see what sort of defense the bulls put on here. This moving average also was the springboard for the early 2012 rally as a break of it to the upside in late December was a key development.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
