200 day ma = broken

Wow, what a day in the markets.  The S&P 500 was down 3.9% today, to 1071.59, closing below the 200 day moving average.  This does not look very promising at all and the next item of contention is testing the previous 2010 lows from February at around the 1060′s in terms of closing price.  Chart below:

Yesterday, I spoke about being interested in a positive bounce, specifically in financials and that I would be monitoring the ETF, FAS.  Did I say FAS?  I really meant FAZ, the triple-short ETF…..I’ll let you decide which I truly meant by reading the article, but I have attached both charts below…..see for yourself which one you should’ve traded today:

I really don’t have much faith in bullishness anytime soon, but there is always hope.  Traders always have hope, whether it be the pure desire for wanting the “bounce” to come, or the flipping sides on a trade and turning to short positions to profit in any market.  This can be done with some short ETFs out there, and you don’t even have to pick up the phone to call your broker to find out if there are any shares out in the marketplace for you to borrow.

The FinViz.com heat map shows almost ALL red squares, other than Mastercard (MA), which is quite interesting.  I am assuming traders believe it has something to do with the fact that V and MA are expected to be less-effected by any new financial regulations than other financial industry firms, so traders may be liquidating other financial institution holdings to pick up some MA.  See this article from Reuters which mentions this as well.

For those of you interested in the foreign currency market, check out this link which shares charts of various forex comparisons.  The EUR/USD (which is the main currency trade that I follow) was up slightly today to 1.2564.

Futures…can it only go up from here?

Good luck tomorrow, it should be an interesting trading day!