By: Scott Redler
Let’s see if we get a complexion change today. The first support for the S&P sits at 1,130-1,132 with major support at 1,126-1,127. The headline jobs data looked weak, but the market’s reaction is rather muted so far. With UPS upping their guidance, it’s hard to have too much conviction either way.
The Rundown:
- As of now, the banks are overbought.
- Oil and the OIH are overbought.
- Metals are in the middle.
- Tech is oversold–or getting there.
- I will be looking to buy Google (GOOG) at $580-583–or if it goes through yesterday’s low of $192ish, stops and comes back above the low, I will be a buyer with a stop at the low of the day (again, this is the RedDog reversal trade).
- Apple (AAPL)–watch the $208-209 area to see if it holds. If it doesn’t, we could easily see $200-205, especially if you see GOOG break down towards $585.
- Amazon (AMZN) could not hold its 50-day moving average yesterday and that is a troubling sign.
- So, the complexion change I pointed out when GOOG broke $620 was definitely worth noting.
- Casinos gave us a great trade–they could go higher, but it’s not compelling right now.
Today is a good day to keep it tight and start the weekend early. It’s been a great start to the New Year and we look forward to keeping it going.
