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ITZ posted this S&P500 chart this afternoon on Twitter
Several factors combined to the sell off today...the disappointment that the Fed yesterday didn't give the markets QE3. Today the Philly Fed’s June index was expected to be flat given prior signs of a slowing economic recovery, but the negative 16.6 figure was far worse than anticipated. Meanwhile, Goldman analysts advised clients to short the S&P, with a downside target of 1,285, some 5% below Wednesday’s close.
After the close, Moody’s Investors Service downgraded the debt ratings of 15 major international banks and securities firms on Thursday, a move that could cost the banks billions of dollars in extra collateral.
ITZ noted Tuesday to Sell the News read ...perhaps now is time to buy the news?
The $SPX came down quick, testing the 38.2% Fibonacci retracement level and breakout neckline. ITZ believes we could see a reversal tomorrow. Will that reversal take it to the 1390 measured move off the Inverted Head & Shoulder? We'll need to watch for that.
West Texas Intermediate Crude Oil broke below $80 a barrel today. Approaching the October 2011 low of $75 chart
ITZ Gold:Oil Ratio is giving a buy signal on the weekly chart, the play there is Proshares Ultra Crude Oil ETF (UCO). ITZ has suggested to buy this at higher levels with an average cost basis of $31.30. Let's stay with this even though its down.