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The tape came in fairly hard today. Spain got downgraded a couple of notches and Chevron (CVX) came out and guided lower for the quarter. That reversed the energy names which make up a decent chunk of the S&P. I don’t think Spain mattered, as the market was looking for a reason to let some air out. We are done with Europe from a market jarring standpoint in my opinion.
Next S&P support could be as early as tomorrow morning, as the 50 day moving average, (mentioned last night) is only a few handles away at 1430.64. It is possible that we may need to get back to 1400 to really have a decent flush.
The Russell 2000 landed right on its 50 day ma support. For the market to get another strong leg up, this group will need to get going as it has been lagging now for quite a while.
Apple managed a 5 point rebound today, but still has some work to do.
The financials actually acted well considering the market today and the coal stocks were down slightly.
China has been bludgeoned to death over the last five years and I am starting to take a hard look. The FXI is nearing an important downtrend line that has been in place for what feels like forever. Chart below.
A stock over there that looks good is SINA. I am not putting it on the list tonight. The 50 day ma is trying to cross up through the 200 day ma, not there yet, but incredibly bullish if it happens and it will signify a major trend change.
The stock is also in a falling wedge which can also be a very bullish pattern. As you can see, SINA held support at the 200 day (yellow line). My target would be the 70 level. Stop should be around 58 if you enter.
