The market is becoming increasingly erratic at upper levels as
(INDEXSP:.INX) gave back all of the gains from yesterday's
snapback. Monday we saw the sharpest sell-off so far in 2013, but
yesterday's bounce had traders once again throwing up their hands
and wondering if it was back to the melt-up we have seen so far
this year. However, this time the rally was short-lived and the
S&P looks poised to potentially break its 50-day moving
Although the market has been remarkably resilient since Congress
infamously settled the fiscal cliff squabble, there is certainly no
guarantee that will continue forever. As a trader, you have to
trust your process and rules, and you can't simply ignore the red
flags that have increasingly popped up the last few weeks. The
faulty signals have grown louder this week with the dislocation in
commodities markets and continued relative weakness from key
sectors like the
(NYSEARCA:IWM), and the
When the market become violently indecisive, it can often be a
precursor for lower prices, and I think that is what we are seeing.
Anyone who has expressed that opinion so far this year has been
made to look a fool, but I believe the signs are more compelling
than they have been at any point during the past several months.
) finally took the plunge down through the $419 pivot support
level, and briefly dipped below $400 for the first time since
December 2011. Seven months ago it would have been hard to predict
this type of demise for AAPL, but at each step of the way there
were clues. What's next for AAPL after hitting this key
The banks also look like they could be set to continue lower after
most of the sector heavyweights reported earnings in the last
) all delivered what looked like solid earnings reports, but the
market sold them off the following session.
) delivered a very strong report, and is also struggling to hold
onto those gains.
Bank of America
(BAC) was a dog today on heavy volume after delivering a mediocre
report, dropping 4.72%.