Into The Blue Again, After The Money's Gone

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Talking Heads: Same As It Ever Was

We began the week waiting for a significant reversal of current trend. Although intraday that seemed likely, the resolve of the market returned leaving everything as it was the end of last week.

If it weren’t for the small caps, one might actually see today’s action as positive. After all, SPY and DIA held the 50 DMA and the bull phases. NASDAQ tested but closed above the fast moving average.

For our part, we will continue to look for SPY and DIA to fail the 50 DMA or not. We will look to short there as opposed to the big momentum stocks that have been hit hard already.

It certainly seems that interest rates had a peak low last Friday-that will be one more factor in a sea of indecisive factors currently spooking any new investors from entering the market.

Personally, I enjoy these times as when the market is “easy” the barrier to entry as a so-called stock expert is nil. Now, the amateurs are quiet leaving the pros to navigate and stay one step ahead.

For Tuesday-the classic turn-around day, if NASDAQ holds the 86 level and SPY DIA hold the 50 DMA, expect IWM to play catch up.

S&P 500 (SPY) 186.50 pivotal, over 188 much better.

Russell 2000 (IWM) Tested and held the 200 DMA. 112.50 a line in the sand to cross.
This one is either or-a huge topping pattern that measures down to 100 or a drop to support that bounces around going nowhere in particular.

Dow (DIA) Like when an instrument respects a major line in the sand-with a lack of confidence by many, these technical lines in the sand help restore some of that lost confidence.

Nasdaq (QQQ) 86.35 the fast moving average. Over 87.35 or so, much better

XLF (Financials) The Bank of America news hurt this group. 21.94 is the 50 DMA if this has a chance of recovering

SMH (Semiconductors) Confirmed the warning phase. Since tech stocks live here, a move 45.00 is a really good sign the worst is over

IYT (Transportation) Still holding the 50 DMA as a sign of strength

IBB (Biotechnology) Held the 200 DMA which will only be impressive if it can clear 228.80

XRT (Retail) For an instrument that failed the 200 DMA, this hasn’t strayed too far from it. 83.34 the number

IYR (Real Estate) New 2014 highs with the last swing high in 2013 69.60

XHB (Homebuilders) Not pretty here unless it roars above 31.50

GLD No feel here at all

USO (US Oil Fund) Holding the 50 DMA with a good bounce off it

EEM (Emerging Markets) 41.00 good are to uphold now