Monday Wrap Up

What was expected to be a tight-range day ended up being more of a roller coaster once construction spending numbers were released. The uncertainty in the market continues as SPX was rebuffed soundly at its 50d SMA failing to even retest the prior days high.  A further confirmation in my mind of more downside to come.   The trend in my mind remains down.  It appears we SPX will end up with an inverted cross demonstrating that the buyers couldn’t control the days action so my plan remains the same – shorting at upper resistance levels until the market capitulates or breaks soundly above the 50d on higher volume.  Banks did exhibit some early strength as did tech but they both rolled over with a strengthening USD.  All eyes are on the greenback now as even the WSJ figured out that the market is inversely linked to the currency’s movement.  Short setups to follow.

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