As of 8:30 am SPX appears to have broken through hourly mid-Cycle support at 2037.79. The 50-day and Intermediate-term support are behind it. Short-term support at 2031.90 may temporarily delay the SPX decline, but if it opens beneath it, the final support may be hourly Cycle Bottom support at 1985.48.

There appears to be no organized resistance to this decline so far. USD/JPY is down to 117.56 this morning and falling. My report on the liquidity indexes make it clear that there may be no support from those resources, either.

As of 8:37, SPX futures are down 27.05 and may have surpassed Short-term support at 2031.90.

ZeroHedge reports, “Well that escalated quickly. While this morning's weakness in stocks is being pegged to earnings misses (and rightly so), the selling pressure started as Europe opened and Greek stocks and bonds accelerated their freefall. Greek stocks and bonds are now below ECB QE levels and WTI Crude back at a $44 handle as CAT CEO demands Fed does not raise rates due to the "fragile" US economy... The Dow is now 425 points off Friday's highs...”

10-year yields are down .58 this morning, evidence of a large move to the “safe haven” of treasuries.

ZeroHedge reports, “This happened exactly at 830ET when the Durable Goods orders data was supposed to be released…”

Was there a fat finger or do they know something we don’t?

The December Durable Goods Orders collapsed.

Gold futures traded down to 1273.30 in overnight action. Currently it’s price is at 1280.40. Selling pressure may pick up in the next day or so. Gold is on an aggressive sell at this point and may go to a confirmed sell beneath 1240.00.

Regards,

Tony

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Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

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