Will the focus remain on Europe and their sketchy situation? Is it possible with the plethora of economic data due out this week for the US, the market can redirect its emphasis? Can any economic indicators yield end of year optimism?
SPY: Daily RSI oversold, weekly approaching and monthly not yet close. 113.75 is the 200 weekly moving average, an area to watch. Otherwise, with the falling knife and a hammer candle last Friday, there are gaps galore, which with a good short covering rally, can be filled.
QQQ: One gap above 54.73 top 55.30 and 55.75 now overhead resistance. A bit more oversold than SPY on weekly and monthly charts. Would be awfully scary to see this break 50.00.
IWM: 65.20 the 200 weekly moving average and closest area to major support. 70.00 the overhead resistance to watch.
ETFs:
GLD 165-167 now an area of resistance which if clears, should bring in some long interest. Otherwise, 155 was the early fall support.
XRT (Retail) 48.70 the 65 weekly moving average. Interesting area. 46.00 next support.
SMH (Semiconductors) 28.50 the 80 monthly moving average. 25.00 the underlying support.
XLF (Financials) Over 11.97 takes it to 12.37 with any good news in this sector.
XLE* (Energy) Will be a major focus as it approaches major weekly and monthly moving averages. This can easily run to 66 and even 68.00 yet still look awful on the daily chart while alleviating the oversold condition.
IBB* (Biotechnology) 95.74 the 50 DMA and pivotal. Although this sector/group never ran as well as some of the others, it is now holding up a better than most. Support at 95.10 the 10 DMA.
Thanks to Geoff for taking you through last week!
Longs: At this point, with oversold conditions, low volume and lots of damage will most likely exercise patience and caution before re entering the market long or short for anything more than a miniswing.
AAPL Probably the best clue for next market direction. Landed on and held the 200 DMA at 363.90. Not oversold like the others with the longer term charts (weekly, daily) intact. I like that Friday's low 363.32 is close by as a gauge for risk. 371 first hurdle, then 376.60. Day to mini
KSS Landed on the converging moving averages with a good risk to 51.43. Through 51.99 clears those MAs and could see pop to fill gap at 53.25. Day to mini
CPX Through 31.31 can see pop to 33.35 the 10 DMA. Like to see the 200 DMA hold at 30.44. Day to Mini
JAZZ Coming into support at the 160 EMA at 35.42 and the 200 DMA at 34.40. Through 36.50, could see a pop to 37.55 then 38.50. Day to mini
MCD has positive pivots at 92.04 and underlying support now at 91.20 which should hold. Overhead resistance to clear at 93.05 then 95.00. Day to mini
Honorable Mention: BIIB (2 days under FTP at 109.68 R1 110.47) CTXS (Through R1 66.30) F(coming into major support at 9.25. Watching 10.00) CAT (50 DMA at 86.00 Must clear 87.83)
Shorts: With so much oversold, will wait for a short covering rally before new entries.
GS Positive Pivots so must break S1 87.16. Otherwise, with support near to these levels going back from October 4th, could see a rally to 94.00 are next.
Goodnight!
