This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Opening Print and S&P Levels to Watch

Stocks in this article: SPY VIX

The Asian markets closed lower (Shanghai Comp. -2.05%) and Europe is trading modestly lower. Today is the first day of the long-awaited two-day Federal Open Market Committee meeting. While today will be prone to headline news, the real headlines do not start until Wednesday's FOMC meeting announcement, with forecasts at 1:00 CT and the Bernanke press conference at 1:30.

We were right about selling the early rally and a low-volume grind, but this time it was a downward grind. Don't listen to anyone; the real reason the ESZ (S&P e-mini futures) sold off was simple. All the buying associated with Larry Summers headlines was done Sunday night into Monday morning. By the time the S&P futures opened at 8:30 CT the buying was used up and what was left was all sell stops and sell programs. It was definitely a case of selling the news.

One by one the S&P is knocking down all the upside obstacles and making bad news into good. That is how it works. It's not just picking levels on your charts to buy and sell at. Learning the feel of the S&P can be just as important as a critical support or resistance level. Just two weeks ago the markets were worried about the Fed taper and Syria, and now the S&P has seen its largest weekly gain in eight months. There is definitely a psychological side to the markets at work.

Our view:

The S&P has closed higher 8 out of the first 10 trading days of September for a total gain of 66.5 handles and has rallied 78.75 handles from its 1625.00 low. It has been a nonstop buy fest, but it's all short covering. Based on that price action, one would think there is probably more selling around for today. We again lean to selling the early rally and buying weakness. The S&P futures may not close above the contract highs today, but we can't rule out that possibility on Wednesday afternoon. There is a congestion of buy stops building up above 1704 vs. the Dec e-mini S&P that runs to the 1712-1715 level.

As always, use stops and keep an eye on the 10-handle rule. Don't forget to catch MrTopStep on The Closing Print video found under the OptionsTV page (top bar) on Options Profits. We report directly from the SPX pits, wrapping up the day and positioning for trade tomorrow.

OptionsProfits can be followed on Twitter at

MrTopStep can be followed on Twitter at

For LIVE futures chat, more information on the 10-handle rule and futures educational content CLICK HERE FOR A SEVEN-DAY FREE TRIAL.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters