Tipsy Day Fades At the End of the Day

The drumbeat rolls on.....Overseas markets, especially Asia, slammed down hard again, and once again the U.S. pre-market futures are down big. There continues to be all kinds of gyrations and interventions on the part of governments and central banks world-wide to stem the tide, and once again it looks like the SPX will go and test the 840 - 850 support level. The VIX is set to test historical levels again, and today looks like it will be another barn burner of a morning. It's almost weird getting used to this kind of volatility, but it's the norm these days.....

The potential Double Bottom on the SPX is now fading into a Descending Triangle. Price action is weakening as of the last 5 minutes of Friday, and again this morning. I didn't even bother with a watchlist this weekend because I will mostly be watching the SPY, DIA, and Q's for intra-day swings, and intra-day signals. I could do a lengthy write-up on interest rates, the Fed, economic reports, earnings season, and global financial conditions, all of which will come into play this week. But when there is too much information to process in a market that is living in a sub-routine of panic, there's no point in analyzing the minutia. One thing to remember in all of this madness is that you don't have to trade every single day. At the very least, inexperienced traders will want to tread lightly in the potential whipshaws. As for more experienced traders, just go with the price action intra-day, look for clear signals, be nimble, and wherever it takes us is where it takes us. We shall see.....

Early in the day the market is holding support, which is a good sign. This could be a real back and forth battle for awhile.

9:00 pm MT: Traders faded the Dow over 200 points in the last 10 minutes. The very end-of-day drop was almost identical to Friday and caused new closing lows on the year for the markets. Someone has a sell program 10 minutes before the close, which is very interesting.....

We have the Fed this week, and more earnings and economic reports, but we are now getting close enough to the elections that traders are starting to focus much harder on the polls and what that will mean for the policy going forward. So the market is trying to digest a real grundle load of information.