S&P 500 Breaks Below "Key" Technical Level

Tyler Durden's picture

As the Dow tumbles back into the red for 2014 and the Russell firmly into correction territory, all eyes are focused on the 'rotational support' for the S&P 500... and it appears to be faltering quickly. As BofA notes, a break below the S&P's 50-day moving average is key... and we just did. What is just as worrisome is the break of the all-supportive USDJPY one-year-trend to 2-month lows..


Quite a week...


and longer-term...


Via BofAML,

The bearish argument in US 5yr yields is under significant threat. The renewed weakness in the Russell 2000 and weakness in the S&P500 (the 50d at 1868 is KEY) say that Treasuries should continue to rally. NOW, in 5s, the trouble for bears starts on a break of 1.535% (the Apr-14 low). This would result in the first push below the 200d since May of last year and expose KEY RESISTANCE AT 1.480% (the Mar-14 low) . Below here completely invalidates the bearish argument and exposes the long-term pivot and Oct-30 low at 1.224%/1.248%.



As USDJPY breaks a key trendline...

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Eyeroller's picture

FED pump algos will kick in this afternoon.

Manthong's picture

Wake me when it breaks the 400 day DMA.

Angelo Misterioso's picture

totally - it breaks the 50 every couple months on ave -

Al Huxley's picture

Wrong, no POMO today.  The only thing keeping this 'market' alive is free FED money.  Mark your calendars, and get short the day before any NO POMO days, and long before the 'EXTRA POMO' days.  That's all you really need to know these days.

Headbanger's picture

Here  ya go if anybody wants to mess with the chart:


Me thinks it drops to about 1850 or so and then does one last bounce to complete a "terminating rising triangle" pattern


Bonus chart!  Here's the USDJPY to mess with too:


Spungo's picture

I'm betting more bankers will die and I'll make a killing.

Headbanger's picture

Don't you mean that the other way around?

wmbz's picture

An MSM bobblehead just said... The markets are just taking a much needed breather! That should be obvious to any market watcher!

So there you go...An ex-spert said so.

Ralph Spoilsport's picture

"Jonathan Hoenig of Capitalist Pig isn’t concerned. “The bull market is intact,” he insists."


Jason T's picture

Armstrong has been hinting of a short term correction..



Spitzer's picture

Plugging you blog Marty ?

Who hasn't been calling for a corection ?

madbraz's picture

BoFA is clueless.  5 year yields going back to 1%.

Spitzer's picture

Nothing is key. Recall the golden cross for gold.

50 day this, 200 day that... Heard it all a million times.

Glasnost's picture

It especially doesn't matter when the day hasn't even closed yet.  Once you get a CLOSE below the 50, things can start being said.

SheepDog-One's picture

Indeed, then the talks about declaring every day 'Tuesday' can begin.

oklaboy's picture

is it 2:30 yet? Today does have a "T" in it.

fonzannoon's picture

Tyler, clearly Tepper was just being used as a mouthpiece to jawbone the market into forcing Draghi to do QE. Is this PIIG yield blowout just being manipulated to add some fuel to the fire and push him further?

Dr. Engali's picture

Maybe we should call this the Tepper shake out instead of the Tepper Tantrum.

fonzannoon's picture

I just want to know when to buy greek bonds before Draghi drops the big rumor.

Greenskeeper_Carl's picture

Probably best to stay away from that shit, altogether, my friend.

TheRideNeverEnds's picture

I think you know what this means..... buy the dip!


In related news GBP/USD bounced off its 50 day today also.

Yen Cross's picture

     Meh, give me some real action like the 3% swings in the Nikkei.

The_Small_Lebowski's picture

if you like your correction, you can keep your correction


Ness.'s picture

All those funny lines don't mean Jack shit to the boys at 33 Liberty.  

SheepDog-One's picture

QUICK! Someone declare it's Tuesday!

Kaiser Sousa's picture

look at that...

markets crashing on guess what? - more fucked up economic data and lo and behold...

the phony paper price of Gold slips back under 1300.

and Silver back under 19.50...

its a miracle.....the same miracle that happerns every day at the same times..



yeah, right...

SheepDog-One's picture

Don't worry boys, this MiG Foxbat has PLENTY more fuel vapors left....just keep pulling the stick back harder!

Kreditanstalt's picture

"The bearish argument in US 5yr yields is under significant threat."

"Under threat"?  Is that all they are saying now?

I thought it was long DEAD.   The economy and stock bulls remain in DREAMLAND.

viahj's picture

meh, this doesn't bother me a bit.  if you're playing in the market.... BTFD.  ignore short term noise to shake out weak positions, run stops, etc....  go long and deep for when it "breaks" for real, no one is gonna give a shit about the "market" there will be blood and fire and/or tanks in the streets to be concerned with.  if you can squeeze out some gains to convert into PMs, ammo, preps, etc... then go for it.

orangegeek's picture

And Yellen comes on after the close to do her two-step to bounce the markets tomorrow.


And everything's fine!!!!

q99x2's picture

Just don't you worry about the market drop. BTFD. The DHS will handle anyone that doubts.

Tegrat's picture


ATG's picture

Just maybe this down market is reflecting dis-ease with what is going down in Washington, DC.

Operation American Spring offers Impeachment Relief:


WarPony's picture

Dang, Brian Williams was sending a secret (hello-to-masons) signal to bail out of/short the markets with the newly-found footage of the Hindenburg disaster.

I Write Code's picture

Still inside the (20-day) Bollinger Bands, so it don't mean nuthing yet.

Anyway as all have said, Janet will kiss it and make it better tomorrow.

It would be *healthy* if it dipped all the way to the 200ma, and even dipped below that, but the Fed, PPT, and TPTB will not allow it, apparently.

Down is not an option, who are you going to believe, the Fed or your lyin' eyes?

Spungo's picture

"50 day this, 200 day that... Heard it all a million times"

It's significant because a lot of people use moving averages as sell triggers. When it crosses below the moving average, at least some percentage of people will decide now is the time to take their money off the table and see what happens. Another percentage of people will buy the dip. If there are more dip buyers than cautious sellers, the price goes back up. If nobody is left to buy the dip, the cautious people drive the price down. More people decide to cash out. It crosses the 100 day, then 200 day. More and more people cash out. Without leverage, you get a bear market. With record high margin debt, we'll probably see a gigantic crash when margin calls begin.