So let’s continue our discussion about this patience thing. The market certainly tried ours day one into the week.
Furthermore, let’s examine the Russell 2000-after all, that is the instrument that exhibitedginormous volume last Tuesday. Four possible scenarios prevail.
1) The blow off top pattern is still playing out-although possible, I would have expected a weaker close at least under the fast moving average.
2) The market is digesting the recent rally through time rather than price-looking more feasible as the trading range from Tuesday remains the trading range of the last 4 days following last Tuesday.
3) The market is digesting while it works off overbought conditions, and pretty much will continue to be range bound for a while longer-also possible especially given the Russian wildcard.
4) The market is not merely digesting, but fueling for a blast off from last Tuesday’s high with much higher levels to come-that could also come to fruition on the heels of some good economic numbers and a soothing Janet Yellen regarding bonds.
Regardless, the operative word is patience. No runs, hits or fouls.
S&P 500 (SPY) Low volume digestion day holding support Subscribers: Negative pivots in all
Russell 2000 (IWM) Held 118. Keep watching
Dow (DIA) Gets through 2014 resistance and everyone will feel a lot better-the bulls anyway
Nasdaq (QQQ) Check out 90.80 as a place to clear Tuesday Subscribers: Will give a tight risk to today’s low
XLF (Financials) Hardly budged-supports new high possibility
SMH (Semiconductors) Resting
IYT (Transportation) Shooting stars-big eyes
IBB (Biotechnology) Inside day resting
XRT (Retail) Held up really well and looks like a good place to look for higher
GLD Chop chop.
XLE (Energy) Has to clear 88.54 once and for all
TBT (Ultrashort Lehman 20+ Year Treasuries) Inside day. TLT Confirmed a phase change to bullish
CORN (Corn) Subscribers: 32.50 should be support
BAL (Cotton) Subscribers: Inside day
JO (Coffee) Subscribers: Made new highs
SGG (Sugar) Subscribers: Inside day and looks really good if holds here
Bye for Now!
