Fear Is Pain Arising From Anticipation Of Evil

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Aristotle

When one reads about the horror man inflicts upon man and then all piled up in the course of one day, the business of money-is, well just that-business-not life itself.

Today, we must step back and put a few things in perspective. First, my undying allegiance to market technicals. The 20 year Treasury Bonds, the Russell 2000s and the darling of 2014, Semiconductors, have been the consistent “tell”. They have been whispering caution (semiconductors with their first break from the highs last week)-today, they screamed from the rafters.

However, I take no solace in money made or saved in light of tragedy, hatred, war and the suffering that all of those combined inflict.

So, yes I can tell you that we had a huge volume reversal pattern in the other 3 indices (DIA QQQ SPY). I can tell you that Retail, Homebuilders, Solar Energy and Regional Banks failed their 200 DMA. I can even give myself some slight congratulations on keeping my portfolio in mainly cash and now well outperforming for the year.

Tonight though, I will hug my loved ones and give thanks for the safety of my home and neighborhood. I urge you to do the same!

S&P 500 (SPY) 197 now a point of resistance. A gap lower would make the 50 DMA more probable. Otherwise, the end of the week could also yield digestion

Russell 2000 (IWM) Unconfirmed Distribution Phase. Some support at 111.16 the June lows

Dow (DIA) Held up the best yet still reversed from new highs. With another day of confirmation, that would make this action more negative. I cannot imagine sitting long over a weekend with so much going on, but look here as best clue for that

Nasdaq (QQQ) Confirmed topping pattern today but has support at last week’s low 93.63 to break

XLF (Financials) 22.50 the 50 Dma

SMH (Semiconductors) Second major dump after making new highs and this time with big volume. Phase intact, but tend to think more weakness in store

IYT (Transportation) One of the stronger sectors and a place to look if the market can hold

IBB (Biotechnology) The 50 DMA at 245.09 failed for now

XRT (Retail) A big troublesome sign for awhile now

IYR (Real Estate) Another strong sector to watch if the market holds up

ITB (US Home Construction) As I feared-a one day wonder on Wednesday

GLD Big rush to gold in face of turmoil

USO (US Oil Fund) The 50 DMA at 37.99 to clear

OIH (Oil Services) Made a topping pattern in early July-today confirmed that more so

TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs told the story or the nightmare

UUP (Dollar Bull) 21.52 the 2090 DMA to clear