Soft Tape, Energy and Retail Weak

Stocks moved into negative territory for the week as the S&P (-0.9%) tumbled below its 50-day simple moving average (2,414) for the first time in seven weeks. The Nasdaq (-1.0%) and the Dow (-0.7%) also registered sizable declines, but none as great as the small-cap Russell 2000, which settled lower by 1.4%.

Things look queazy at best out there right now and even the financials were red on a day when rates rallied.

Energy continues to be garbage. Oil was up most of the day but it got crushed at about 1 PM to give back most of the days gains.  I wouldn’t be surprised if we saw oil and energy crack lower. Stocks in the XLE look a lot lower. An example would be REN.  It’s trading around 29 but looks like it wants 22.


Biotech was off almost 2%, but its still holding that bull flag on the daily chart, so its fine for now.  This bio pullback/consolidation is going on two weeks now which I like to see.  Ths means more names are starting to set up again. Stay tuned.

Retail continues to trade horribly as some earnings pre-announcements start to roll in. See LB today for example.

See you in the morning.

Previous Post
Biotech Getting Primed Again
Next Post
Summer Doldrums, But Earnings May Bring Some Excitement

Recent Articles