"Nary a Bounce" $DIA $SPY $QQQ $IWM

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“The 3^rd time the SPY sees the 50 DMA won’t be a charm theory” What I have been tweeting and writing about, came to fruition big time with the gap lower and nary a bounce intraday with the eventual close as the biggest one day drop since November 2011. The small caps, Russell 2000, were the holdouts until late in the day, also closing under the 50 DMA. All indexes are now in a unconfirmed warning phase. Rates and the dollar continued to rise. Gold dropped like a stone under long term support and everything else followed in kind. Remember the mention of the real estate stocks as good shorts? Anyone check out Boston Properties or Lennar? BXP dropped 6.45% and LEN dropped 7.69%. Not that I’m so happy about the accurate assessment mind you. A market in decline might excite the perma bears, but I am always rooting for the bulls. However, we are smart enough to read the market conditions. Hopefully, these daily comments have helped you as well.

S&P 500 (SPY)Unconfirmed warning phase and still a relatively weak one going by the slope of the 50 DMA. But, except for the possibility of an end of week bounce, lots of damage done

Russell 2000 (IWM) Unconfirmed warning phase and still a relatively weak one going by the slope of the 50 DMA. Yet, it still remains the best one of the bunch relative to the price and the 50 DMA

Dow (DIA) 146 could be some support and only a move over 149.20 or so would be mildly encouraging

NASDAQ 100 (QQQ)In line with all the others, weak warning phase, lots of damage done-will need some work before considering anything more than a daytrade long.

ETFs:

GLDI warned you! It never gave anyone a chance to see 130 defended. Now, 115 is a target but with very oversold conditions, a bounce is not out of the question-maybe even to 130

XLF (Financials)After taking out a substantial monthly reversal off the lows, today it closed beneath. Will see what happens around these levels.

IBB (Biotechnology) Vulnerable? Looks like it will go the way of real estate-visiting the 200 DMA next if can’t hold here

SMH (Semiconductors) The mighty fall alright! 36.97 May low-like to see it defended, especially since Intel (INTC) remains in a bullish phase, however marginally.

XRT (Retail) As one of the stronger sectors, this held the 50 DMA-first place to look for a possible bounce, but not ready to call it a long-term one just yet

IYT (Transportation) Held June lows 109.25. Another group that could be the better place to look for a bounce

IYR (Real Estate) Wrote Wednesday night: “This is the sector to find shorts if the market continues its drop tomorrow.” Man, true that!

USO (US Oil Fund)Dropped to the moving averages-that is interesting except for one thing-the island top that was left

OIH (Oil Services)Held June low, but less interesting for a new long now

XLE (Energy) 78.00 might offer some support

TBT (Ultrashort Lehman 20+ Year Treasuries) Bond bubble is here, but now, kinda late to the party

UUP (Dollar Bull) Gapped over the 200 DMA today and changed phase warning. Should hold the 200 now

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