Twist My Thumb Up

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The market still has me somewhat concerned-not the end of days type of concern, but more of when will the big correction really get going type of concern. I write this because of how the first 3 trading days began (clearly pointing towards some downside) and that the Tuesday turnaround didn’t actually clear important overhead resistance. See the recap below.

Plus, we have unknowns ahead of us-FED minutes, earnings season, jobs report in particular. I thought that if the Real Estate ETF could change to a more positive phase, that could juice the market more. Alas, it did intraday, but closed back in its bear phase-where it’s been since August 2013.

Unless you are a super active daytrader, the trading plan for now is to take a stance based on solid risk/reward parameters, diversify your portfolio-and then hang out avoiding the temptation to overtrade.

Besides, earnings is not the only season upon us-awards season begins-so many good movies, so little time!

S&P 500 (SPY) 184 is the area to clear since the gap last week. 182 held up today so if it breaks, see 180 easily.

Russell 2000 (IWM) Amazing when you see a pivotal point like114.10 the low of the day. We had an inside day though with this under the fast moving average. That seems the best reason to think the correction is not over

Dow (DIA) 165 would have been a great area to close above. However, it closed just shy. Therefore, tomorrow’s first 30 minutes should be really affirming if this wants more up or is going to break 164 and continue going south

Nasdaq (QQQ) “Expect to see the 50 DMA unless it clears 87.25.” Love these technical indices-that was today’s high. If it clears, great, if not, 85.00 next stop

XLF (Financials) Keeping hope alive unless it breaks 21.80

SMH (Semiconductors) Inside day and with a declining slope on the overhead fast moving average

XRT (Retail) Today’s low is the 50 Daily moving average and a really important area of support

IYT (Transportation) Inside day and similar scenario to retail ETF

IBB (Biotechnology) Best looking ETF today-let’s see if it can hold 225

IYR (Real Estate) Could be basing. Need more evidence

XHB (Homebuilders) Looking a bit heavy

GLD Gapped lower but wound up with an inside day

USO (US Oil Fund) Some short covering but hardly a reversal candle

OIH (Oil Services) Looking vulnerable to the 200 DMA

XLE (Energy) Sweet spot and more decisive action there today. Like over 88.00

TBT (Ultrashort Lehman 20+ Year Treasuries) Inside day

UUP (Dollar Bull) Over 21.76 really appears to be bottoming action

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