Market Crushed and Here’s Whats Next:

WEEKLY MARKET ANALYSIS

Stocks opened modestly lower and the decline continued but decellerated intra-day into the close. The Dow Jones Industrial Average ETF DIA was down 4.75 points on the day and closed at 259.52. For the S&P 500, there is support near 2843 and 2792. Resistance levels are currently at 2943 and 2994. Intraday trends havent changed yet, however tomorrow will be a key day to watch out for otherwise we coudl see a trend changing short term. Bonds and gold got bid up for the safety play.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 11 of the 12 major market sectors are seeing red today. The biggest losers are Healthcare (XLV), Pharmaceuticals (XPH), and Transportation (XTN). The strongest sector today has been Energy (XLE) which has gone up 0.2%.

The CBOE Volatility Index (VIX) is up $3.42 going from $15.9 to $19.32 today. The ratio of puts to calls for the current at-the-money strike of $18 is below average which means that traders are favoring Calls over Puts currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is Mylan NV (MYL). On the AMEX VirnetX Holding Corporation (VHC) has had significant interest, and on the NYSE ProShares Ultra VIX Short-Term Futures ETF (UVXY) has had unusual volume.

The biggest mover out of other high-volume stocks is Mylan NV (MYL) which has moved down over -24% recently on volume of over 51 million shares. The chart below shows the performance of MYL over the last year. Mylan N.V. is a global pharmaceutical company.

DARWIN MYLAN NV FORECAST

The performance of Mylan NV (MYL) will be worth watching in the near term for a number of reasons. The forecast for the coming week on MYL is for the price to go down. The correlation of MYL to the S&P 500 recently has been 0.2 which is a weak positive correlation. Key levels to watch for MYL are upside resistance at both the $27 and $31 price points.

Trade smart,

Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network