First off, it is just too funny reading news reports on the Fed. We do not believe they are going to raise rates but if they did, what kind of a big deal would it be to go from 0% to 1/4%?
Just to repeat a report from a couple weeks ago…WATCH THE FINANCIALS. They are leading down and now major indices need to be watched as they have come under some serious distribution while they remain in what we call a nauseating trading range…but now, nearing the lower end of range.
So with so many areas of the market bearish and with the areas still in shape coming under pressure, here are your support levels to watch. Simply put, if they are not taken out…good…if they are…we suspect decent technical selling will show up. And unlike October when a good correction was staved off by coordinated money printing by Japan and Europe along with lowered rates in China, who is left?
S&P 1988 and then 1972.
NASDAQ 4563 and then 4547.
NDX at around 4080.
For a change, the Russell holding up better but thinking it is just some of the January effect. Support at 1150 and then 1134.