An excerpt from Monday’s night daily: All in all, expect that although overall damage done, an unchanged or even slightly lower open tomorrow will bring in some buyers.
And so it did. However, as one who tracks several indicators, not the least of which are the pivots and their lineups, I can tell you that Tuesday’s session does not bring back the warm and fuzzies.
The Dow could not cross the floor trader midpoint and the others could not clear either first resistance points (R1) nor prior day high. The Dow is super close to the 50 DMA while the S&P 500 tested it and then held on. Of course, the small caps and NASDAQ are well beneath their 50 DMA.
So what else? An inside day (range inside of Monday’s range) in the Russell 2000s aka small caps and NASDAQ.
With lots of overhead resistance, we can only assume that even if we get another green day, the worst is not over-still no reason to reiterate the signs of a bottom.
S&P 500 (SPY) The 50 DMA is at 184.15. A move over 185.81 could bring some more life Subscribers: Negative Pivots here and in DIA. Positive in QQQ and IWM
Russell 2000 (IWM) Over 114.46 would be welcomed. Otherwise, a good one to follow the range break either way
Dow (DIA) 161.30 the 50 DMA to watch here
Nasdaq (QQQ) Over 86.75 some relief here otherwise, another one to watch for the range break to follow
XLF (Financials) Tested and held the 50 DMA. If moves back over 21.96 a better sign all around
SMH (Semiconductors) Semis the new biotech and so much prettier than their predecessors
IYT (Transportation) 132.50 the 50 DMA
IBB (Biotechnology) Bumping above the 200 DMA but way too soon to predict if that will hold
XRT (Retail) Inside day on the 200 DMA-big eyes to see where this goes
IYR (Real Estate) Inside day. 68.85 decent resistance-and if clears very promising
XHB (Homebuilders) 31.09 the 200 DMA
GLD Crossed the 200 DMA but not the 50 DMA-watch the range today-especially after the FED minutes-could very well set the trend direction for the next few months
USO (US Oil Fund) 37.34 and above negates the island top
OIH (Oil Services) Inside day after the nasty topping candle
XLE (Energy) Inside day
XOP (Oil and Gas Exploration) Inside day and back over the fast moving average
TBT (Ultrashort Lehman 20+ Year Treasuries) FED minutes coming up
FXI (China Large Cap Fund) Subscribers: Reached P1!
CORN (Corn) Subscribers: It should continue up from here if old fashioned chart reading still works
FCG (First Trust ISE Reserve NatGas) Looks pretty good here even near the highs
SGG (Sugar) Subscribers: 55.00 has to hold but just bottom picking until this clears 60.00
Bye for Now!