Good morning traders, US Market Update Central to the chatter...

Good morning traders,

US Market Update

Central to the chatter today is the S&P's breach of the 200 day moving average. Other than that there is not much to report as commentary is full of ambiguity and on the light side. With you, Hong Kong and Europe being off on Monday, volume has been fairly light as well.

Last week, financial media and bull funds twisted themselves in knots while trying to talk the SPX away from the 200 sma ledge and/or February lows.

They were going overboard to tell readers and viewers that the president cannot harm Amazon; and on Sunday they were slow to devote any major headline space to China's follow through on their threat to impose retaliatory tariffs.

As of this note, the Dow and R2K are resting at their 200 day moving averages while the NDX has broken its 150.

Utilities were the only green sector for the first part of the US session but they have now joined all other sectors.

The VIX is up solidly (+28%) but perhaps not as much as one would expect given the ostensibly precarious state of things.

SPX/ES/SPY: 2558.42/2557.00/255.12
Having broken the 200 day - finally - the SPX is selling off in a rather controlled path toward the February 9 lows of 2532.69 - where it is assumed the bulls will mount a defensive bounce. The bulls would love to pronounce any ricochet off the Feb lows as the start of a double bottom and rally based on upcoming earnings and springtime dividends. RSI, MACD and NYMO are relatively unscathed and have plenty of room to the downside should the bears parlay this sell off into some higher volume action. The action for now seems controlled.

S&P Futures Now