Flash Point - Morning Market SnapShot for Thursday, September 16, 1999
The CPI number was released yesterday morning about an hour prior to the open. In Globex trading the S&P futures soared, giving hope that a rally was underway.
From the opening bell, sellers were all over the market and the S&P closed at the low of the day perched at the edge of the abyss, confounding observers.
Of particular interest is how the Treasury bond futures traded inside the range of the day before, forming an inside day to mark time until the next economic data release. This morning we have industrial production, capacity utilization and unemployment claims. Friday brings housing starts and building permits as well as a "triple witch" expiration of options, September futures and options on futures. We must now keep a very close eye on both yesterday's high and low on the Treasury bond to see if a bottom can be formed on this test of low on the daily chart or if the bottom falls out. In the former case, bonds will still be trapped inside a triangle. In the latter case, we had better double check the availability of escape pods.
The S&P 500 Index is in a similar place, having closed at the bottom edge of the triangle consolidation marked by the pink lines in the chart above. New 52-week NYSE lows are exploding, swamping out the new highs. If there was ever a good place to find support and have buyers show up, this is it. It's show time.
Charts specific to these comments have been posted to
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