November 1, 2016 / 5:52 PM / 2 years ago

BUZZ-Longest streak of losses in more than a yr sends S&P 500 to 4-mo lows

** S&P 500 violating its mid-Oct trough amid deteriorating internals and bubbling volatility; SPX at its lowest level since early Jul. Chart:

** SPX on track for 6th straight day of losses, longest streak since last summer. Last time index fell 7 straight days was Aug 2011, per Thomson Reuters data

** Support breaks could easily accelerate given broad weakness and rising vol measures

** VIX spikes to 20. It last closed around these levels in the aftermath of the Brexit selloff late June

** SPX has taken out its 2114.72 mid-Oct trough and now testing support line from Sept low (2109)

** This as New High New Low data adds weight to bear case, and breadth/momentum continues to decline

** Meanwhile, CBOE Volatility Index and CBOE Nasdaq 100 Volatility Index have popped to 7 and 18-week highs

** Thus, SPX close below 2109 can lead to test of its 200-DMA (now 2079.99). However, given monthly divergences, index can threaten its 1991.68 post-Brexit low as a decline gains steam

** SPX vaulting back over late Oct high (2154.79) and resistance line from late-Aug (now 2165), however, coupled with improving breadth and calming vol, would suggest worst is over

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