Christopher Lewis
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The S&P 500 as you can see fell hard during the course of the day on Monday, crashing through the 1900 level. Because of this, we feel that the S&P 500 will continue to fall from here, and that rallies will continue to attract sellers as we continue to push the market much lower. Ultimately, we feel that the market will probably look for the 1850 level, and then possibly the 1800 level.

The markets seem to be looking for some type of reason to continue to sell off, and it is likely that the market will do so. However, the S&P 500 tends to be a bit stingy and if we get decent economic numbers out of the United States anytime soon, this could turn around rather quickly. Ultimately though, we think that the short-term continues to be a selling opportunity as the S&P 500 falls victim to global concerns. After all, the Federal Reserve has recently stated that they are concerned about global growth, and that could affect a lot of other economic markets out there beyond some of the foreign stock markets that we’ve seen.

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The US dollar continues to strengthen overall, and that of course hurts earnings sell we have to see whether or not that can be overcome. Until people are less concerned about the US dollar, you’re going to have a hard time to see this market going much higher. Because of this, we are very patient but recognize that the short-term could offer a lot of opportunities to do things such as short the market or possibly buy puts in the short-term binary market as it would allow for profiting off of this obviously bearish market.

If we do break down below the 1850 and the 1800 level, this market could really come undone at that point in time. However, we realize that looking at the longer-term charts will probably be the way to go going forward to make any buying decisions as is market certainly is finding itself to be extraordinarily weak and unloved.


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