The S&P futures got slammed again yesterday with negative news coming from all directions.Moody's cut its debt rating on JPMorgan and is considering doing the same for Bank of America and Wells Fargo.

The news sent financials tumbling and brought the rest of the market along for the ride. It's hard to miss the fact Citigroup trading under $1/share on Thursday, creating an incredibly negative psychological impact on equity markets.

Furthermore, GM dropped below $2/share, making the company's sustainability doubtful. Investor uncertainty is rampant, and there is no bottom in sight at this point.

We still haven't seen a strong rally stemming from oversold condition which can be molded into something more substantial. Therefore, we maintain our near-term negative outlook on the S&P futures.

The psychological 700 level is long gone, and investors will need some unexpected positive news to turn the markets around. Investors are eagerly awaiting the release of the official U. S. Unemployment Rate Friday morning.

Some traders are predicting a capitulation point if the number is worse than analyst expectations.

However, even if this does happen, it will likely be temporary since there is no substantial positive news or data to justify a legitimate bottom.

Meanwhile, the 30 Year T-Bond futures are looking to breakout to the upside and Gold is rallying. If these trends continue, then they indicate a continuation of the selloff in U. S. equities.

Fundamentally, we find resistances of 690, 696, 701.75, and 709.25. To the downside, we see support of 683 with 2nd tier witting at 675.25.

We can't find any other near-term supports, usually a negative sign.

The S&P futures are currently trading at 684.25. 

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