Pukish Action

 

IBM is letting it ride on their next new cutting edge product release.

Dow: -118.79...
Nasdaq: +13.56... S&P: -4.02...

Yesterday GS and JNJ screwed the pooch on earnings and today it was IBM which dropped 8 bucks or 5%.  Crude oil also added to the difficulties of the market as it fell almost 4% because the EIA reported a much smaller than expected draw.  XLE fell 1.5%.

The oil and gas exploration sector got hammered down 2.75% today.

The reflation trade is still wounded and XME had a rough day, down 1.7%.  It broke its 200-day moving average today and is now at risk of dropping hard if that doesn't hold.

Lastly, gold miners (GDX) got hammered down 3.5%.  GDX broke four moving averages today and an important uptrend line today.  Stay away for now.

With all of this bad actio you would think the indexes would be  alot worse. I do however believ r=that the SPX addn Dow may need to get down a little lower and test some support.

You can look at the 2320-2322 area for SPX support and the 20,200 level for the Dow for support if we don't turn things around tomorrow or the next day.

The bears have had their chance to really take out the weed whacker on this market but they really haven't been able to do it.  Hopefully, we are coming closer to a tradeable bottom, because this action has just been horrible.  Stay patient if you can right now, you will be rewarded when the dust settles and that could be soon.

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