heinz, the DOW, TRAN and UTIL are now all BELOW their 200 DMA. The DOW 10,524 is obviously one trading day away from capitulation now and within striking distance of taking out DOW 10,410. This will lead to a quick hard sell-off which should initially carry down to the 10,200 area before any bounce materializes. It may or may not be short-lived within the day, but ultimately will lead us one way or the other to 10,050.
SPX is sure to follow the DOW and once they take out 1,300 on the next attempt it is all but assured to take out 1,294 like a knife thru butter. SPX will then be index #5 to bite the dust. 1,280 SPX is last line of demarcation before the bull troops retreat with a vengeance.
RUT is #6 on deck in the battery of strike-outs.
UTIL is sitting right on top of psychological 300 level.
TRAN hit an intraday low right above 2,900 before another dead-cat took the bounce.
Now for the I-NUTS. There is still no fear in this market when new issue I-DOT EPIPHANY comes out and soars 30+ points in its opening trading day. It gives the word EXPEDIENCY a spit in the face and rings cacophony in the ears of kamikaze bulls that there is no risk in this market.
As for TECHS: I think everybody knows by now that Wednesday is the best trading day of the week for this group. Let's see if NDX can get that second close above 2,500 and/or 2,480 respectively. On the upside, let's see if NDX can plow past this important NDX 2,550 area or will this be where she gets stopped dead in her tracks, if there is an initial upsurge out of the gate tomorrow.
Nevertheless, the DOW should've rallied off tech coat-tails and we will see the true pull of the DOW on any break attempt forthcoming.
Also notice BKX is stuck in the mud (up 2 to 739)and sitting well below it's 200 DMA. When BKX is not participating in a "BULL MARKET", then by definition there must be still something else lurking out there that has not reared its ugly head.
Best Regards, J.T. |
