In the last hour of trading today, the markets gave back almost all the rally from earlier today. More than half of the declines since January have come in the last hour of trading and today we saw another decline which was basically in the last hour of trading.
The catalyst could have been news that the FBI had raided the office of President Trump’s personal lawyer, but the rally was already in trouble before this rumor reached traders.
SPX Chart Intraday for Apr 9 2018
You can see in the 5 minute SPX chart below from today, that the uptrend ran into trouble around 2:00 PM and by 2:50 a down signal showed the market was probably going to sell off.
The signal lines being used are the 10 period simple moving average (SMA) and the 30 period exponential moving average (EMA) which can be plotted on the charts of most stocks and indexes to give a good general overview of how the security is trading intraday. They do not work with one minute charting.
S&P 500 Intraday Apr 9 2018
Outlook for Tue Apr 10 2018 Weak To Start
Losing the rally in the last hour of trading has become common for the markets this year. Normally the following morning starts flat to slightly higher and then sells lower until at least mid-morning. This may have the same effect on Tuesday. With the S&P closing at 2620, it will not take much selling to send the index back to 2600 on Tuesday. I will be writing more on the market direction this evening.
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