Market Review: S&P ETF Breaking Below Key Support Level

So if you have been reading through a number of the news websites there is a lot of clamor about earnings and how they are expected to be one of the worst earnings periods since the financial crisis, and this news is putting some pressure on stocks.

One stock that moved on earnings was Chevron which saw there profits get hit by hurricanes during this hurricane season, obviously there was Alcoa yesterday that missed the mark and a few others.  The Fed came out and said that they saw slow growth during September all of these issues wieghed heavily on the markets.

The chart of the SPY ETF is seeing some significant breakdowns and although not critical yet,is approaching the 50 day moving average which might signal that the markets overall are in line for some correction and consolidation.

The chart shows that the SPY ETF broke the lower regression channel since the June low, this is an alarming break because most of the price action has been contained to the channel.  Now that it has broken it may suggest the trend may change.

I am leaning a little more bearish  but keeping my risk low then as things breakdown adding on to things.



Happy Trading