By: Scott Redler
The market has given back almost 50% of Friday’s rally, not a very good sign for the bulls. We came in today with conflicting patterns: a decent short term outside bullish Reversal from Friday, but a very bearish prevailing pattern. The head and shoulders top remains in power here.
Right now, the S&P is around 1055. If we close below this level we will negate the small relevance of the reversal from Friday. This will give us 1040 as the next major point of reference. In order to relieve some short term pressure, market will need to close above 1060 but we would still not be out of the woods.
BANKS are extremely weak.
GS has made lower lows with a small support around 136 and a major support around 132.50-135.
JPM is still above Friday’s lows but that could change quickly.
BAC is at new lows of the year with 11.90 as next major support.
TECH
AAPL tried to be strong early, but is giving in a bit. They have a product release tomorrow, so that will be watched closely. LOOK TO THIS TO SEE IF MARKET CAN STAGE ANY LAST HOUR REVERSAL TO THE UPSIDE. So far 246 resistance controls this stock.
AMZN is down and holding above last week lows, so watch 122.50 as major support
BIDU was strong early but turned tail and looks lower, it’s almost engulfed all of Friday.
NFLX was weak early and still looks like it’s in trouble.
SNDK was upgraded and is up .25cents after getting very beat up last week or so.
CRM is down with market.
INTC is flirting with sub-18.
CSCO we are .10 above Friday’s low of 20.36.
FFIV acts well but not looking to really buck the trend here.
RIMM has been a decent long but still no real traction. Still worth buying dips vs. 45.
POT acts well with looming takeover.
AGU also strong today.
X punished all longs from last week trying to believe in a takeover. Next big support is 40.55-41, from 50 to 43 that is a tough down move.
FCX is holding in okay, but hard to trust.
GLD is flattish with some more time it could be worth adding again.
This market remains on the defensive. You can only be long if your quick and nimble.
Obey the action and don’t get greedy expecting follow-through.
