Mind Your P's and QQQ's!

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Coming into today: “Considering we began with a correction from the highs in all indices and 2 days of a negative short term bias, if Monday continues in that direction, follow-through is the most likely scenario…. Then, we can look for a possible U-turn if the jobs report is a major surprise (well over or under 7.0%).”

The Russell 2000s were the weak link and with all indices in correction mode, we turn our attention to the 50 DMA as next area of support. I continue to note the divergence among sectors and groups.

Several country ETFs are taking it on the nose. In light of a deep freeze across much of the US, oil and energy prices remain weak. However, the bright spot, financials, keep hope alive. It does seem the market is looking for some bad economic data ahead given the rebound in the Real Estate ETF and the 20-year long bond rallying well. (FED minutes due out Wednesday).

Pandora reigned supreme as it does in our house every time I play my shuffle list for hours on end. Did you know P’s getting “smarter” (ok-maybe even bordering on invasive), assuming your political affiliation and buying habits-all from what you like to hum to?

Overall, we remain cautious ahead of the upcoming calendar range date.

S&P 500 (SPY) Distribution in volume. 182 interim support if the market is to have a turnaround Tuesday.

Russell 2000 (IWM) 114.10 remains pivotal otherwise, see the 50 DMA next point

Dow (DIA) If breaks under 163.58 will expect more downward movement. Otherwise, best shot to hold and lead

Nasdaq (QQQ) Expect to see the 50 DMA unless it clears 87.25

XLF (Financials) New highs, close on the lows puts this in reversal possibility-but as the best in show, that has to prove itself out

SMH (Semiconductors) The 50 DMA here looking attractive

XRT (Retail) 86.45 the 50 DMA and a key to hold for confidence

IYT (Transportation) 128.00 remains a good support level to see if there’s anything left

IBB (Biotechnology) Couldn’t hold 225 which means back to looking at 218

IYR (Real Estate) A better chart but in its bear phase, vulnerable until it takes out the 50 DMA

XHB (Homebuilders) Big fall from grace with 32.24 the spot to hold

GLD 121.50 resistance

USO (US Oil Fund) Definitely near-term oversold now

OIH (Oil Services) Looking vulnerable to the 200 DMA

XLE (Energy) Monday turned out not as decisive as I would have expected given its remains holding the 50 DMA

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