Not much news overnight besides the usual Spanish yields rising and other rumblings out of Europe. The China Debate continues and today starts Earnings season with Alcoa. The Media loves to emphasize the importance of AA but we all know it’s a non event. Futures are up a bit as we are somewhat oversold. Hard to be massively short when the McClellan Oscillator at -71ish. We could bounce a bit before we head to bigger support areas, but we don’t have to. Stay light with only the best of the best if you’re a Macro investor. Intermediate/Momentum guys like myself will try and Sell rallies, Short breakdowns and only buy in extreme oversold conditions with a plan.
IBD big cap 20 is out. Great list to measure against your portfolio if you hold one.
I might as well list it: Apple (AAPL), Alexion Pharma (ALXN), Priceline (PCLN), Celgene (CLGN), Master Card (MA), Dollar General (DG), salesforce.com (CRM), Yum! Brands (YUM), Starbucks (SBUX), Visa (V), VMware (VMW), Intuit (INTU), V.F. Corp (VFC), QUALCOMM (QCOM), Valeant Pharma (VRX), Las Vegas Sands (LVS), Bed Bath & Beyond (BBBY), Biogen Idec (BIIB), The Home Depot (HD).
SPY micro support is yesterdays low of $137.84. The 50day moving average stands at $137.29, under that is $136.24. Major Major support is $133.75-134.25.
SPY resistance starts at yesterday’s gap, $138.78. It will be interesting to see how much of the gap can be get filled if it can push into to starting filling at $139.26. If the bears/sellers have any control, they don’t let it get above and close above $140.25 zone.
Leaders yawned at yesterday’s downside action. Until they start getting hit this might just be a slow hard to trade drip lower.
Disclosure: Scott Redler is long LVS, DNKN, JPM, ZNGA. Short SPY.