Day trading - risk off - Dollar strengthens Index falls Bearish pullback as Apple kicked off the move down followed by Google as earnings didn't meet expectations.
S&P500 emini futures has settled beneath the point of control. The sellers gained control in the overnight session as there is more pressure to move to the dollar and bonds in the face of Spain's recapitalization and Europe's ongoing financial crisis. Previous to this week the market has been ignoring the news out of Spain and Greece but this morning Spain is again parsing out money to cover banks. The point of control on the S&P500 emini futures is 1418, the sellers took control before the US equities market opened. Our next area of support is 1398 to 1402. This is where we got the break out to or swing highs which were tested three times. We have had two distribution periods since September 11, with the the third distribution leg starting with the Apple AAPL sell off from 1460. This last distribution has moved the market roughly 60 points from the highs to break the support at 1418. Normally, we would look for three days selling pressure, then consolidation before the continuation or reversal. The support is the Psychological number 1400. If investors see the market close down below the 1400 area it could put more pressure on selling and we could see this move to the next target 1384-86 . The emini futures has pushed past the 40 point selling range for a volatile move this past three sessions so we could see it break further to 1365 area for support on the 200MA. [...] day trading course
