SPX at 1289 handle now, under the 1291 resistance, and supported by the 1286-1287 level. The descending triangle on the XLF, financials, played out as projected at the open, dropping XLF to 16.10 and lower. Broad markets will have trouble rallying without financials.
Market bulls did bounce copper, however, and the bus bombing in the Middle East as well as Euroland negativity is giving PM's, gold, silver and commodities an orgy bounce. SPX 20 day MA crossed down thru 50 day MA which is bearish.
Dollar wanting to bounce today as even the cab driver says the dollar is about to collapse. This makes the commodity strength today suspect. Market bulls remain quick to buy euqities in here, CPC shows no signs of fear, VIX now slipped under 20. It is as if no selling occurred at all in the markets recently, everyone is bullish again, so you know what will typically happen.
UTIL with a 403 handle now. The POMO pumping pushed this up and out of danger the last few days but now it is drifting lower again. If 400 is lost this week the broad markets are in trouble, if 397 is lost, big trouble, if 394 is lost on the UTIL, broad markets will go into free fall.
TRIN is 1.35 so the bears are in control today but the selling is not out of hand, it is slow and steady eddy selling. The market bears are favored for now.
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