Thursday’s Technical Analysis For: S&P 500 (SPY) Shaky

$SPY, $NFLX, $GS, $C, $USB

Earnings are coming in earnest now, with Netflix (NASDAQ:NFLX) reported after the closing bell Wednesday, it missed and its shares are trading at 106.89, -3.03% or 3.34 after hours.

Citigroup (NYSE:C), Goldman Sachs (NYSE:GS) and US Bancorp (NYSE:USB) are among a big list of companies reporting their numbers Thursday.

Thursday will also see the release of the monthly headline and core CPI estimates; the Empire State and Philly Fed manufacturing indices, and the usual weekly unemployment claims figures.

Following today’s earlier disappointing data releases, the market’s reaction suggest a Y 2015 Fed interest rate raise is off the table now.

The US major market indexes looking shaky,and  the USD/JPY currency pair looks as if it made up its mind, and is heading South after a long period of consolidation. Given their current positive correlation, if the Southward move accelerates in the USD/JPY now then stocks could follow.

The S&P 500 chart is looking like it is turning South again.

Wednesday, the S&P 500 formed a Bearish engulfing candle around the technically important 2021/2 area. This mark corresponds with the 61.8% Fibo retracement mark of the downswing off of the all-time high.

This level was previously Resistance, meaning that we may have a Double Top pattern forming up.

The slow Stochastics turned lower from overbought, though it has not created a Bearish divergence. a lower high, which means the signal from this momentum indicator is weak.

But, if the S&P breaks hard below Key support at 1995 (closed Wednesday at 1994.24) may see the return of the selling herd.

The next mark to watch would be the 50-Day SMA at 1984 followed by prior Support at 1970. Them nothing but air until the Bullish trend line at 1900/10. This Bearish technical outlook would become invalid upon a potential rally beyond the 2021/2 mark.

There is some support at 1888.01.

 Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a technical trader

Stay tuned…

HeffX-LTN

Paul Ebeling