Tuesday, August 25, 2015

Ominous

"Man looks in the abyss. There's nothing looking back at him. At that moment, man finds his character. And that is what keeps him out of the abyss."
--Lou Mannheim (Wall Street)

Ominous action today as a 400+ pt morning move higher in the Dow didn't stick, and domestic equity markets finished instead in the red, down about 1% and closing on the low tick.


The SPX closed today on yesterday's intraday lows, suggesting that the index is peering into a near term abyss.

Longer term perspective reveals that this selloff has brought us down to the uptrend line formed from the March 2009 lows. As such, a significant break lower from here that sticks would technically 'end' the uptrend.


In early afternoon I did decide to get involved with the banking complex, with JPM as my vehicle of choice.

position in SPX, JPM

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