Big Caps Saving the Dow For Now

It will be an interesting week ahead. The uptrend that we have enjoyed is suspect to say the least and many wonder if we will continue to the downside or get a vicious oversold bounce to the upside. I’d be lying if I told you I knew, but I will be watching these charts like a Peregrine Falcon. I still love energy, and materials ‘may’ have dipped to a ‘buyable’ level. I don’t trust the financials, and if that sector rolls over, it will put big heat on the S&P. I’m ready to buy, but I also have nuclear bazooka’s at the ready to implode bids if that’s what the Doctor orders. Good luck next week. Subscribe here to see what I’m doing next week. To request my track record, email me at [email protected]

DOW JONES
DOW JONES

The DOW can thank big caps like IBM and GE for it’s counter trend success.

NASDAQ 100
NASDAQ 100

The Nazzy didn’t fare as well thanks to AAPL and some other names that weren’t quite as cooperative.

S&P
S&P

The S&P is still hanging in there nicely, however if it loses the 1270 level, the 50 day sma is down around 1238

RUSSELL 2000
RUSSELL 2000

The 50 day ma is about eight points away. A break of that level, if it happens, would be ugly.

The GREENBACK
The GREENBACK

The dollar is garbage right now and has the glide pattern of an anvil, yet commodities still sold off.

XME-METALS & MINING
XME-METALS & MINING

XME should catch a bounce as it is right on support, the dollar is also getting short term oversold.

ENERGY
ENERGY

Energy is definitely the best house in a rough neighborhood right now.

MATERIALS
MATERIALS

The material sector has had about 5% correction, and may be overdone.

THE FINANCIALS
THE FINANCIALS

Uptrend still in tact as it bounced off the 20 day moving average. The big banks already reported and their reports were nothing special. Lack of catalyst could put banks at risk.

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