Short Term Trading Week Starting: Tues 3rd Apr, page-19

US Market Update

"Stocks are having their biggest second quarter opening losses since the Great Depression" - or something like that - is now trending on social media. If you read my posts you know I don't suffer the financial media their silliness but you also know that I don't give the perma-bulls much leeway either. IMO, even without the dysfunction in DC, the equity markets had no business at January's levels.

Now that we are off those highs, we have the snap back rallies, the rumors of impending NAFTA deals, more Chinese tariffs and all the rest to contend with. Let's also have the value players come out and proclaim the good deals to be had.

Now that we are near the 9 Feb lows and the bulls are as determined as ever to ignore the elephants in the room , you can almost hear the bears quoting one fictional Mexican mariachi: let's play.

June gold is up at (1345.60 +1.38%) and the USD is up slightly at (90.039 or +.12%)


SPX/ES/SPY: 2581.88/2576/257.47
The SPX started to bounce on the 14:00 hour at 2553.80 and did continue off the lows with some decent volume. This happened on conspicuously weak breadth and should be viewed with some caution given what is sure to be a negative reaction in your neck of the woods. To be sure, the bulls are itching for the bounce but the retail trader is sure to be cautious given the uncertain backdrop.

Market Internals
Advance-Decline Lines: -1807.00. NYSE Breadth: -10.54:1, NASDAQ Breadth: -8.2:1. NYSE TICK: Cumulative TICK trended lower until 14:30 and then trended up but still negative. TRIN: 2.52

NYSE MOC: +377M. NYSE composite volume was below average.

Implied Volatility
VXJ8:21.35, VXK8:20.00, VIX:23.62

Debt/Bond/Treasury
ZNM8 was essentially flat on the day at +.06%, leaving the 10 Year Treasury yield around 2.73%

S&P Futures Daily