China suffered another market 'crash' last night sending stock futures lower, but only modestly so. The market recovered those early losses after the opening bell and moved into positive territory on a number of occasions before pulling back, and ultimately closing the day lower.
The $SPY closed under the $210 level, after defending it rather well for most of the day. Overall the range was small and volume nothing to write home about.
S&P500 futures remain range bound, but closer to breaking out than breaking down. Perhaps stock futures will rally overnight to break through this short term resistance. If not the market could pull back to last weeks lows where strong support resides.
from a shorter time frame, S&P 500 futures have found home in a familiar spot into the close and after the bell.
I remain positioned for a move lower for $XLE. We could see some share bounces along the way, but I think $60 and less is coming.
The VIX finally took a stand today. It recovered almost half of yesterdays clubbing.
If we look at the action from last week, mid-Wednesday the market found footing and rallied into the closing bell on Friday. Could we see a repeat of that this week? Thus far the Monday rally and the Tuesday pull back fit the mold, but what will tomorrow bring?
I think we have to continue to keep an eye on whats been moving the market recently. China remains a concern as does the continuing descent of Crude oil. What remains bullish is that in the face of all these negative headlines and headwinds the market remains well bid. Is it the constant bid of the corporate buybacks? Are investors getting into stocks before the next leg higher takes the market to fresh highs? One thing remains the same, central banks around the globe have taken a lot of the risk out of investing in the stock market.
Yet if you look over at China's stock market you can see what happens when control it lost. It' easy to think that won't we happen over here. That the FED won't lose control. In this digital era you would think financial stability is a mere mouse click away. China is telling us differently. Let's see if they can stabilize things tonight. The market didn't seem to care much about China today. There's a good chance if China crashes again over night the market may just shrug its shoulders again. On the flip side, if China recovers last nights losses via a sharp rally, I could see stock futures shooting higher.
Tomorrow we have CPI numbers as well as the FED minutes.
Have a great night