The Market Drop This Morning Could Get Ugly – Watch This Level

Posted 9:30 AM ET - Last night I gave my mom her final doses of medication and she lost her battle with leukemia. It was an emotional experience and she knew I would never leave her side. The last year has been very difficult and I miss her already. I think you would all like her and I will write a tribute for her over the weekend. Thank you for all of your prayers. The market has a negative bias and the bounce from the hammer on Monday is losing its luster. We are going to test $264 support today after a round of weak economic news from China. Their retail sales grew at the slowest pace in 15 years and factory output hit a 3-year low. The EU flash PMI hit a 4 year low. This should give the Fed plenty of room to pause next year. All eyes are on the FOMC next week. The SPY needs to close above $264 today or we could be in trouble heading into the weekend. My comments will be more extensive next week. Swing traders should stay in cash. We did not buy the SPY at $264 yesterday and we missed that entry by $.12. Let’s see if support holds today and we can evaluate Monday. Day traders should use SPY $264 as a guide. If we are below it, favor the short side. I think we could see sustained selling today. . .

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