Wednesday, January 19, 2011

Largest one day drop in two months

Pretty severe move on the downside today, no less than 13 points drop on SPX making this the largest one day drop since the middle of November. The short term support around 1286 didn't hold but the one around 1277 did. Price moved bellow both EMAs but is still above SMA 120, today around 1273. Intermediate and long term time frames remain bullish. 

On daily chart please notice that market found support at the 7 weeks uptrend line.

The weak dollar didn't help the market today. Yesterday market went up a little bit on three bad news, today plunged on two good earnings (IBM and AAPL) and a bad one (GS). 

VIX has spiked 9% but remains very low. 

EBAY reported good results today, after hours,  LUV, MS and FCX are reporting tomorrow before market opens. I don't expect market to move too much tomorrow since most of the people are going to expect Google's earnings and they are going to come out only after hours. 

Friday is probably going to be a very interesting day, market is going to digest Google's earnings, we are also going to hear from GE and BAC and in top of that it's the option expiration day.

Have a nice evening!

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