There is nothing surprising about digestion at these levels after a huge move down followed by a sizeable gap up. Energy, Biotechnology and Retail prevailed while Financials and Semiconductors dragged. Divergence in sectors and technicals.
SPY: There is an island bottom after 2 days confirm. Also 2 doji days and a failure to clear the 50 DMA keeping the bear phase alive. All this spells indecision. Question is, what will be decided-up or down and by when? Subs-pivots are positive in all indexes so watch for S1 and or R1.
QQQ: Tried but could not fill the gap to 55.30. Phase remains bearish. 53.80 area support and a move over 55.30 encouraging. Of course, AAPL clearing 379 would help a lot, but also see the possibility of the second time at the 200 DMA failing.
IWM: A monthly close under 68.75 looks pretty negative. A daily close over 70.05 a sign of relief.
ETFs:
GLD Dull action last 2 days while it sits above the negatively sloped 50 DMA and beneath the adaptive moving average. Watching the range 165.50 to 167.50 to break in either direction.
XRT (Retail) 50.75 the 200 DMA to penetrate. 49.40 important to hold or we could consider this a rally into major overhead resistance.
SMH (Semiconductors) 28.50 the 80 monthly moving average. Will watch to see if semis can keep the long term trend intact.
XLF* (Financials) Held 11.97 with an inside day. Would be first sector to watch for the island bottom or failure in its current bear phase.
XLE (Energy) Confirmed island bottom in a recovery phase. But not enough to keep the whole market going. Under 66.13 back to bear phase. Still lots to clear on upside.
IBB (Biotechnology) First one to test and now fail the 200 DMA. 99.50 resistance and 97.00 support.
Longs: In a bear phase making longs nervous. But, controlling losses when the market is searching for direction and letting profits run when the market finds it is what professional traders do. Will mainly focus on the indexes now. Live coaching tomorrow at 12:30 PM ET
BIIB Now negative pivots at 110.59 which means would like to see it hold S1 at 109.90. If does, will look for an entry especially if clears 111.43. The see possible run to 119.30. Day to short-term swing
YUM Scratched on the ½ position long since could not clear the 30 minute opening range. Positive pivots at 54.82 the 10 DMA 54.08, now max risk. Possible move to 59.00. Day to short-term swing
MCK Has the 200 DMA at 79.60 to clear but with positive pivots at 78.65, tight risk to under S1 78.12. 84.60 good first target. Day to short term swing
FSLR Positive pivots at 44.24 with a really tight risk to under S1 43.15. Not looking at a bottom more of a miniswing with first target 47.00 and maybe a move to the 50 DMA 53.70. Day to mini
Honorable Mention: Positive Pivots and must hold S1: JAZZ* NSC CBI ESRX RAX Must clear R1:KSS* MCD.
Shorts: Ultrashort QID is one to watch if clears R1 49.20.
AAPL Negative pivots at 374.08. Clearly has to break the 200 DMA but if does, see 344 next. Day to mini
ADP Negative pivots at 48.79 and should not clear R1 49.08. Under S1 48.51 could see drop to 44.75 and possibly 43.00. Day to Swing
BIDU Inside day and negative pivots at 125.68. Should not clear R1 126.69. Still hanging onto the 65 weekly moving average at 124.10 which if breaks looks like 100 is not out of the question. Day to Swing
SYK Negative pivots at 46.77 with R1 47.08. Recent low 43.73 and could see 2010 low 42.75 or even 30.00 possible if we get a complete meltdown. Day to Swing
Hon Mention-Watch for S1 to break: CERN CRM LRCX OR High Failure: MOS AMZN
Goodnight!