And So, She Turned Her Back On The Abyss For Another Day

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Megan Kennedy Bury Me In Smoke

Although great to see some follow through after the outstanding conclusion of last week considering the week began looking like an abyss, not much happened according to current phases in the indices.

So, here’s the rub-is this a triple bottom in the small caps (February, May and now August lows in succession OR, a huge double top (March and July highs) with rallies running out of gas?

We might just have to stay tuned while trading in the July range for the remainder of August to find out. Besides geopolitical turmoil, domestic focus will turn to politics with the mid-term elections coming up. Weary traders will begin to turn towards summer vacation until after Labor Day. Of course, we never rule out any possible scenario, but range bound right now, seems the logical assumption.

Bright spots right now: Gold miners, Retail, Biotechnology and Solars, if hold the 200 DMA. Needs some serious steroids: Financials and Semiconductors. China doing very well. Regional Banks will take some time. Interest rates remain wonky as in, they are very low therefore, showing a lack of basic trust in the intermediate future.

S&P 500 (SPY) Today’s gap low is important to hold if this is to have a chance at the 50 DMA and a positive phase change

Russell 2000 (IWM) Could not close above the 200 DMA-like SPY if has a chance needs to hold todays gap low

Dow (DIA) Confirmed the reversal pattern making this a really good place to look for strength

Nasdaq (QQQ) Best one to follow if things continue to improve-especially if holds todays low

XLF (Financials) 22.36 a good spot to hold or some issues

KRE (Regional Banks) Look here and you wonder where the bulls are?

SMH (Semiconductors) This really has to take some leadership and clear the 50 DMA

IYT (Transportation) Similar to SMH

IBB (Biotechnology) At least this cleared the 50 DMA, now trick is can it hold?

XRT (Retail) This cleared the 50 DMA, now trick is can it hold?

IYR (Real Estate) Confirmed bullish phase

GLD Low rates and warring nations-this is not a great move up, but enough to not let it go down either

Metals and Mining (XME) New 2014 highs-after clearing 43.00

USO (US Oil Fund) Unconfirmed Warning phase-dancing on the 200 DMA-keep watching

XOP (Oil and Gas Exploration) 75.50 now key to hold

TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs –Possible top? Said that before, but one day it will be true