Ok so at least we now know that the 1,850 is the key support level now for the SPX on the weekly chart here. It looks like there is an attempt to head for 1,900 before May if the terrible data continues. I would like to see a good 20% correction in May but who knows. I have no doubt whatsoever that there are HFT algo's that come in at a pre-determined percentage move for the day, either up or down and change the direction. When is the last time you saw more than a 2% move on the markets in a day? It does happen, but not often.
Now as I am typing the U.S. is sending a warship to the Black Sea. I just don't know what to make of this. I am quite sure that Putin is not looking for a war but NATO is.
All we can do is watch as this unfolds and keep an eye on the support and resistance lines. If there is a terrible NFP jobs number on Friday as I expect, the markets will no doubt rally as they always do on the news.
The Weekly MACD is not quite crossed up yet, so if it does cross up there could be a chance that the SPX hits 1,950 before a correction.Who knows?
I know that the U.S. wants Assad out of Syria before the mid year election which is coming up very soon. Maybe the Ukraine situation has stopped them acting on that problem that remains unresolved since last year. There are rapidly escalating conflicts in Africa. There are problems in Nth Korea and Sth Korea again. Obama is saying his biggest fear is a nuclear bomb going off in Manhattan. If not that it is the imminent threat of cyber attacks. Iran has signed a deal with Russia for a $20 Billion goods-for-oil contract. It just goes on and on.
S&P 500 weekly chart
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