Note-even if there are no new trades, you all have the advantage of reading the notes to my subscribers (subs) which are chocked full of ideas on areas that I would like to see hold or clear
Market recovered more than ½ of Monday's losses and several instruments tested and held the 50 DMA. However, only DIA of the four indexes were able to cross back over their floor trader midpoint which makes today encouraging yet indecisive. Plus volume on the S&P 500 did not confirm the move with an accumulation. Bottom line, watch rates (TLTs closed under the 50 DMA) and small caps (IWM or Russell 2000) for best clues which way as we approach hump day.
S&P 500 (SPY) 151.50 is overhead resistance and still looking at the 50 DMA for support. Subs: Pivots negative with today's high and R1 lining up
Russell 2000 (IWM) 87.75 is the 50 DMA. 90.90 now significant resistance Subs: Pivots negative with today's high and R1 lining up
Dow (DIA) Inside day. 136.00 is the 50 DMA Subs: Let's watch R1 and the overhead 10 DMA
NASDAQ 100 (QQQ) Confirmed weak warning phase since could not cross the 50 DMA. Subs: R1, today's high and the 50 DMA all line up
GLD 154 now key support if this bounce is good to 158 next resistance Subs: Took 1.5 ATRs off in GLD and left a small tail
XLF (Financials) Bounced off of the 50 DMA. Over 17.50 would be an encouraging move
IBB (Biotechnology) Sloppy chart but did bounce off of the 50 DMA twice
SMH (Semiconductors): Inside day. Subs: R1 and today's high line up with a good line in the sand at 34.32
XRT (Retail) Uninteresting DOJI candle for now
IYT (Transportation) Subs: Doesn't look ready yet
IYR (Real Estate) Inside day. Subs: Good housing numbers but still has that nagging slingshot high.
USO (US Oil Fund) Inside day. Subs: Over the 200 DMA, 33.50 is in the same neighborhood as today's high and R1-worth watching
OIH (Oil Services) Subs: Nice bounce off of the 50 DMA with 2 days left to see if it can close over the 80 monthly moving average. R1 and today's high line up
TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs did not confirm the recovery phase which makes me real interested to see if the TBTs can clear its 50 DMA. Subs: Confirmed weak warning phase.
DVY (Select Dividend Index) Inside day
XOP (Oil and Gas Exploration) Subs: Not sorry we stopped out Monday, but since this held the 50 DMA, will look for a low risk entry setup if holds
XHB (Homebuilders) Inside day Subs: Inside day means that if it cannot get through today's high, still a possible short candidate
UUP (Dollar Bull) Subs: 22.65 is the 200 weekly moving average.
Bye for Now!
