4:03pm
Today, we saw the pullback in the market’s that we called for in Friday’s video. Stay tuned for today’s video.

3:50pm
There’s the 61.8% retracement. We boosted our SSO (L) position up to 10%. We will add on a breakout later this week.

3:43pm
The SPX is just 2 points above the 61.8% Fib retracement level at 1235.

3:32pm
XLF now down more than 4%. Volume light. Holding its 20 moving average on a daily chart.

3:30pm
The ES is having trouble breaking above its descending 20 moving average, now at 1242.

3:17pm
MER and AIG down 10%. MER is not far from its 52-wk closing low at 24.69.

3:00pm
Keep in mind the following earnings reports after the bell: AMGN, CYH, EDS, HIGH, MOS, MTW, SLG, UHS and XL.

2:57pm
This is exactly the kind of action the bulls needed. The market is pulling back on relatively light volume. This should setup a nice opportunity for an S&P long trade. SSO is an leveraged ETF that gets you 2X long the index. We have put on a 5% SSO (L) but are waiting to add to it.

2:40pm
A possible 2:30 reversal taking place. Bullish engulfing candle on XLF. The ES bumping against overhead resistance at its 20 moving average at 1244.50.

2:30pm
Oil closed up $1.50. At the close of the open outcry session, crude was bought and nat gas was sold off. Paulson about to speak on covered bonds to increase mortgage financing.

2:14pm
UNG seeing some accumulation here. XLF near session lows at 20.25.

1:35pm
The S&P is making fresh session lows near 1241.

1:14pm
We just took a 5% position in SSO (L), just to dip our toe in the water.

1:11pm
Bottoming candle on ES 10-minute, but volume too light to trust.

12:57pm
Market making news lows. The SPX has now moved below the 50% retracement level at 1245.80. The next important Fib level is a 61.8% retracement at 1235.10. We will let you know when we start building a long position in this market.

12:07pm
The market is trying to bounce off session lows. I would not try to play this bounce from the long side (except for quick hitting day traders) as a test of 1246 seems very likely in the short-term. Be patient building a long position. Important data comes out Thursday and Friday, and the market may drift until then.

11:51am
IMAX looks interesting on the long side here. Target 8.25 with an exit at 7.86, currently trading at 7.91.

11:35am
The ES moving down to new lows, approaching the 50% Fibonacci retracement level at 1245.80. We are not in a rush to build a long position in case there is continued downside. If we see a high volume bottoming candle piercing 1246, then it might be worth a shot.

11:19am
The markets have fallen sharply lower, with the ES falling into its session low from earlier this morning at 1250.

11:02am
The ES trying to find support at its 50 moving average at 1253.50.

10:30am
Markets cannot sustain a rally this morning, bu the ES is still above its 20 moving average. Financials have reversed into negative territory.

10:19am
Oil and natural gas trying to bounce off session lows.

10:03am
Oil prices have gone negative.

9:46am
Financials strong this morning. XLF up 1.3%. LEH up more than 8%.

9:35am
S&P attempting to breakout here as oil slumps towards the flat line.

9:20am
The S&P E-Mini Futures (ES) are flat as we begin the week. Oil is higher by about $1 above 124.

12:00am
Good morning. StockTock is calling for continued consolidation or a possible pullback in the S&P early this week. We will look to start building a long position under 1245.80, which is a 50% Fibonacci retracement.