15Jan2016 Market Close: Major Averages Close Down Over 2%, Crude Closes Below $30 And Short Term Indicators VERY Bearish

Written by Gary

US averages traded sideways all session, down over 2% once the markets opened. The DOW was down over 500 points earlier and finally closed down just under 400 in the red. The large caps remained perilous close to breaking down and out of their supports which might have created a market waterfall. (See below)

Todays S&P 500 Chart

Still NOT the right time to jump in as the MACD’s and volume’s have NOT peaked, Supports not broken and trends not busted for the major indicators,: close, but not cigar. SKEW has reversed, so we are close ro a reversal of some sort.

Monday should give traders a better view. Crude prices a surly a good bet as the shorts are going to get clobbered soon driving prices upwards.

The Market in Perspective

Here are the headlines moving the markets.
	House committee seeks testimony from ‘Pharma Bro’ Shkreli WASHINGTON (Reuters) – A U.S. congressional panel has asked pharmaceutical entrepreneur Martin Shkreli to testify at a Jan. 26 hearing about his company’s decision to raise the price of a life-saving prescription drug, according to a Republican committee staffer.
	Ex-GM engineer acknowledges ‘mistakes’ made over ignition switch NEW YORK (Reuters) – Jurors on Friday heard testimony from a former General Motors engineer who approved a faulty ignition switch 12 years before its problems prompted a massive recall that came too late, according to lawyers for a man suing GM over injuries he suffered in a crash.
	Wall St. hemorrhages; S&P 500 hits lowest level since Oct 2014 (Reuters) – Wall Street bled a sea of red on Friday, with the S&P 500 sinking to its lowest level since October 2014 and the Dow losing more than 500 points as oil prices sank below $30 per barrel.
	Oil plunges below $29 on prospects of more Iranian crude, China worries NEW YORK (Reuters) – World oil prices slumped more than 6 percent to below $29 a barrel on Friday, as a further fall in the Chinese stock market and the prospect of an imminent rise in Iran’s crude exports deepened fears of a longer supply glut.
	Citigroup, Wells Fargo gird for loan losses as oil price dives (Reuters) – U.S. banks stockpiled their defenses against rising loan losses on Friday as oil prices dived below $30 a barrel and global equity markets fell sharply.
	Fed was worried 2010 leak amounted to ‘insider trading’: transcripts WASHINGTON (Reuters) – The Federal Reserve was worried that leaks of its confidential discussions in 2010 exposed it to charges of insider trading and raised questions over its credibility, according to transcripts of meetings released on Friday.
	Weak U.S. data deluge points to sharply slower growth WASHINGTON (Reuters) – U.S. retail sales fell in December as unseasonably warm weather undercut purchases of winter apparel and cheaper gasoline weighed on receipts at service stations, the latest indication that economic growth braked sharply in the fourth quarter.
	GE to sell appliances business to China’s Haier for $5.4 billion (Reuters) – Haier Group said it would buy General Electric Co’s appliance business for $5.4 billion, the Chinese company’s latest attempt to boost its presence in the lucrative United States market.
	Automakers vow to boost car safety in U.S. government pact DETROIT (Reuters) – As the auto industry battles to win public confidence after several massive recalls, a group of 18 major carmakers announced on Friday that they have agreed to a voluntary program with the U.S. government to improve auto safety.
	Black Friday Unleash hell… And this… Worst Start To A Year… Ever! It’s ugly in ‘Murica… Of course – it’s not just US, China has collapsed this year…(Worst start to a year ever) Japan was a shitshow.. And Europe is in a bear market having erased all of the Q gains… (Worst start to a year ever)
	Americans This Weekend (In 1 Chart) (3)01k? Source: Townhall.com
	The US Consumer Is Drowning His Sorrows At The Bar Submitted by Jim Quinn via The Burning Platform blog, Month after month I watch as the MSM mouthpieces try to spin declining consumer spending in a positive light. They are practically out of excuses. They are befuddled, because month after month they report “awesome” job gains and can’t understand why all these gainfully employed Americans aren’t buying shit they don’t need like they used to. These faux journalists, spouting propaganda for their ruling class bosses, are willfully ignorant of the fact the job gains are in low paying part-time jobs and the fact that Obamacare and record high rents are sapping any discretionary income households would use to buy stuff. Despite the propaganda from the media and happy talk from the Liar-in-Chief, the country is currently in a recession and the Fed has no ammo to fake another recovery. We are going down and going down hard. When 70% of your economy is based on Americans buying shit they don’t need from China on credit cards, a dramatic slowdown in consumer spending equals recession. When sales actually fall from November to December during the holiday season, you are in recession. We’ve arrived. The December report was a disaster and portends horrible retailer results coming down the road. More ghost malls coming to your neighborhood. The annual results were pitiful, with the more recent months even more dreadful. So after adding 10 million jobs, according to Obama, spending declines? They must be great jobs. I think the results are even worse than portrayed in the results presented by the Census Bureau. Retail sales grew by only 2.2% in 2015 versus 2014. That is significantly less than the real inflation being experienced by real people, so on an inflation adjusted …
	Here’s A Chart You Won’t See On CNBC What goes up, comes down considerably faster. For global stocks, Bloomberg notes, the way down ($15 trillion lost in 7 months) has been much easier than the climb up ($30 trillion added in 4 years). Source: Bloomberg With markets from Asia to Europe entering bear markets this month, stocks worldwide have lost more than $14 trillion, or 20 percent, in value from a record last June amid worries over global growth and deepening oil declines. The pace of the drop has been so fast that it has already unraveled about half of the rally since a low in 2011. And here is a bonus chart from Bank of America, which looks at the S&P on an equal weighted basis, to avoid such aberrations as the collapsing market breadth phenomenon, also known as FANG. Spot the symmetry.
	U.S. Stocks Sell Off Amid a World-Wide Rout U.S. stocks slid and the 10-year Treasury yield fell to 2.030% as steep declines in oil prices and Chinese equities heightened anxieties that have pushed markets around the world lower this year.
	How to Feel Safe in Stocks When the Market Seems Dangerous If the market turbulence is making you nervous, Jason Zweig has a suggestion: Stick to your buckets.
	Oil Prices Fall Below $30 a Barrel Oil prices settled below $30 a barrel on Friday for the first time in 12 years as turmoil in Chinese markets and the expected increase in Iranian crude exports added to concerns that a global glut will linger.
	What We Read Today 15 January 2016 Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary “reading list” which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for “reading list” items are gratefully reviewed, although sometimes space limits the number included. This feature is published every day late afternoon New York time. For early morning review of headlines see “The Early Bird” published every day in the early am at GEI News (membership not required for access to “The Early Bird”.). BECOME A GEI MEMBER – IT’s FREE! Every day most of this column (“What We Read Today”) is available only to GEI members. To become a GEI Member simply subscribe to our FREE daily newsletter.
	SolarCity shares have their worst week ever Shares plunge on the heels of a decision by Nevada utility regulators to keep controversial rates for solar-power customers, a blow for the industry.
	KFC is using Colonel Sanders to connect with millennials KFC is trying to reach a younger diner with its founder, Colonel Sanders, and menu items like Nashville Hot Chicken.
	Mark Hulbert: A bear market in stocks will be over before you know it The S&P 500’s decline since last June already is more than half the length of an average bear market, writes Mark Hulbert.