TraderWise

A warning shot was fired in January and the market dropped sharply from relative highs. It established support two weeks ago and a half-hearted rally brought us back above the 100-Day moving average. The volume during the decline was much heavier than the volume during the bounce indicating that there was more downside to come. Resistance at SPY 112 was not even tested before the selling resumed. This morning, the S&P 500 futures are down 17 points on the open. Initial jobless claims were weaker than expected and the employment picture is not improving.