CRB is 304.72, UTIL 456.06, JJC 47.76 and SOX 415.94, all remaining firmly bearish. The Nasdaq is down -1.28% while the SPX is down less at -1.15%, thus, tech is leading the downside, due to AAPL weakness, and the bears receive another feather in their caps. VIX approaching 19 well above the 50-day MA at 17.29. Keystone's SPX:VIX Indicator is 73.74, about five points above significant market trouble at 68. Financial and retail sectors are hammered today as well. XLF is printing 15.28, 15.10 spells trouble. RTH is printing 41.16, 40.75 spells trouble, as calculated by Keystone's algorithm. The bears are cruising along today. Bulls got nothing today unless they win back either CRB, UTIL, JJC or SOX, and that is not looking good. The bears can increase downside damage by causing the XLF or RTH to lose the levels listed.
SPX is printing 1380.76, thus, price fell thru the critical 1388-1389 and 1386 support levels which increases broad market negativity. The 1378 support is now in play. Keystone took profits on the TWM trade after the open, but still holding/adding the other shorts. Also, bot JRCC. WLT and PCX are also beaten down coal stocks which are setting up with positive divergence and already have received more of a beating than other stocks.
Note Added 4/9/12 at 10:27 AM: SPX bounced off the 1378 support; LOD thus far is 1378.26. Keystone sold the JRCC already in a day trade, a one-hour trade for about 3% profit, will look to reenter. CRB, UTIL, JJC and SOX all remain weak making bears happy. Tech is no longer leading the downside, however, and you can see the buoyancy in the markets as a result over the last half hour.
Note Added 4/9/12 at 11:00 AM: SPX is flatlining today as the tech leadership to the downside faded due to the recovery in AAPL. Keystone just stepped in to short AAPL.
Note Added 4/9/12 at 11:15 AM: Broad market status is the same. XLF now only about a dime away from causing another leg down in the broad indexes. Keystone bot EGO.
Note Added 4/9/12 at 1:00 PM: Broad indexes continue to fight back today after AAPL recovered a couple hours ago stopping tech from leading the market downside. CRB, UTIL, JJC and SOX remain sick, however, so the move up is likely a simply back kiss of the SPX 1386 S/R level that was ruptured directly after the opening bell. The dollar has weakened which helps the bulls. Bears remain in control. Apple is the markets, watch for weakness in AAPL again which would reignite the downside. WTIC had dropped under 101 today but is currently enjoying some buoyancy on the weaker dollar. The 10-year is hanging at 2.03%.
Note Added 4/9/12 at 3:00 PM: SPX came up to test 1386 from 2 PM thru 2:40 PM and punched up thru, now opening the window for a test of the critical 1388-1389 that failed at this morning's openeing bell; 1388.26 is an important line in the sand since it is one of Keystone's turn signals. AAPL at the days high so this helps support the bull recovery move today. CRB, UTIL, JJC and SOX remeain bearish so the bulls got nothing except a temporary recovery move, at least so far.
Note Added 4/9/12 at 4:03 PM: SPX gave up the ghost in the final hour failing to regain the critical 1388 R, then, as it reversed, price stumbled back down thru the 1386 S/R, closing with a 1382 handle. Great day for the bears, the bulls needed to regain the levels highlighted this morning for CRB, UTIL, JJC or SOX, and since the bulls could not, they had nothing, and rolled over.
drama, drama, drama. seeing AAPL green and markets red is very surprising. I guess it's easy to limit the downside if one ticker makes up almost 1/5th of the NDX and about 1/10th of the SPX. Just focus on that low hanging fruit and all will be well (it seems ;-) )
ReplyDeleteKS, you're one busy trader today! Nice work on JRCC and TWM. Do you think the Russell will get a bounce tomorrow? Looks like Goldman Sachs closed out their long position on the Russell 2000. Markets bouncing back. Could be another head-fake sell off?
ReplyDeleteSteve
Hello Arnie and Steve, keep watching CRB 312, UTIL 465, JJC 49 and SOX 423.50. Since the bull recovery move has not taken out any of these levels, the market move up should be temporary. Watch SPX 1388.26 which is very important. AAPL is set up with negative divergence on the charts so the buoyancy should not continue, but, as always, take it hour to hour. NYAD dropped under -2100 so that number wants to see some makret upside to burn off the negativity. TRIN at 1.74 is reasonable selling but it did spike over 3 today indicating a need for markets to moderate which they are this afternoon. Watch 1388-1389, 1388.26 and 1386 as the day plays out.
ReplyDeleteToday's close below 1384, which is "long-term" trendline (at least for this rally of the Oct/Dec '11 lows) suggests more selling IMHO. 23.6% and 38.2% Fib retrace off these two levels from the past week's high confluence at 1340.34 and 1338.26, respectively, which also coincides with the early March low of 1340. Seems like waaaays to go, but logical "resting point" IMHO. However, first things first; 50-d SMA is at 1371.33.
ReplyDelete