(INDEXSP:.INX) futures are down 10-12 handles this morning as the
back and forth action continues. This is the type of open some
would probably have wanted yesterday to potentially buy. But that's
the way it's been going these days, as the setups are not the
Yesterday, the S&P bounced back to Resistance No. 2, where it
was contained. The index touched the 1573-1576 zone, which we can
now treat as our new pivot resistance. In order for the "right
shoulder" to build the market shouldn't go much above that in
coming sessions. For all you bears out there, here are my comments
to Patti Domm in the CNBC worldwide blog last night:
Pattern Could Be Forming on S&P Chart.
Support stands at 1560ish and then 1552, with the 50-day moving
average at 1541. The charts of the
(NYSEARCA:IYT) and the
(NYSEARCA:XHB) each has a pattern more bearish than the S&P. It
might be prudent to watch these groups to see if they lead the way
(NYSEARCA:MOO) are also relatively weak.
The banks have been a bit mixed but still hang around.
) came out yesterday with what looked like a solid report but was
sold on the open. Keep an eye on $140-$142 as important support.
) also have been out of play since their decent reports.
) is acting best. It wanted to bounce the day after its report, but
the broader market weakness prevented that from happening.
Bank of America
) also came out with a decent report this morning, but it's trading
down a bit too. It has come a long way. An up open would have been
better, but now I'd like to see it hold the $11.70 area.
Tech continues to be mixed.
Barron's put a positive spin on
(YHOO) this past weekend at $25, which is somewhat funny as the
times to get involved were $16.60 and then $21.75. The $25 area was
the target from my 2013 thesis. Revenues in last night's earnings
report were a bit shy and it's lower this morning. I don't think it
will fall apart. Perhaps you could look to buy that dip at the
$22.27 area, which is the 50-day MA.
(INTC) had a mediocre report, but the stock has been priced for
nothing so it might hang in there.
(AMZN) continues to act well and its holding above $267 would be
(GOOG) is still trying to hang in there but it needs to stay above
$768ish. I'd avoid this stock until earnings.
(AAPL) is still above $419, but there is not much going on here.
Earnings are next week.
(EBAY) acts okay in this tape. Holding above $55 would keep it out
of harm's way.
(LNKD) is very close to recent highs - if it can stay above $175ish
traders will likely stay involved. It still looks good.
(FB) is still very choppy with not much excitement. Wait until
earnings, as it needs to stay above $26ish to maintain any bullish
Metals did not have much of a bounce back yesterday. The
(NYSEARCA:GLD) tried yesterday but couldn't hold the overnight
gains. Use $130.50 as pivot support if you are trading it in this
lower area. It could be choppy for a while but ultimately it feels
like it could see $123.50-$127.50.
Some traders (like me) got caught flatfooted with very limited
longs. I do think being more tactical here makes sense, as the
recent weakness feels a bit different.