S&P 500 (
SPX
) testing the 50 day exponential moving average, let's see if this is yet another buy on the dip, prolonging the bullishness, or the beginning of a rollover.
QQQ
and
IWM
have already taken deeper hits and may be a warning sign of what's to come for the broader market, but
DIA
seems to be holding up. Overall this is to be expected as the higher growth small caps and tech-heavy Nasdaq tend to lead the way both up and down, while Dow holds a more defensive position when rotation happens and S&P is somewhere in between.
SPX
) testing the 50 day exponential moving average, let's see if this is yet another buy on the dip, prolonging the bullishness, or the beginning of a rollover.
QQQ
and
IWM
have already taken deeper hits and may be a warning sign of what's to come for the broader market, but
DIA
seems to be holding up. Overall this is to be expected as the higher growth small caps and tech-heavy Nasdaq tend to lead the way both up and down, while Dow holds a more defensive position when rotation happens and S&P is somewhere in between.
Comment:
After opening lower today on overnight weakness, SPX caught a bit about 15 minutes into the trading day, but indecision still looms as movement is more sideways from then on. The index is trying to make a push higher, but unless it can break 2895 with conviction today wouldn't consider the upside move anything but choppiness. Would look in the afternoon to see if the post-lunch 1:30 EST bid comes in to push things higher. Of the S&P sectors, the three largest components tech (XLK), financial (XLF), and healthcare (XLV), XLV seems to be trying to lead a push up, followed by XLF, and XLK a bit weaker on lower highs and rolling over sooner. Materials (XLB) has been weak all day, and energy (XLE) the only S&P sector showing consistent strength throughout the day so far. Rouding out the sectors, consumer discretionary (XLY), industrials (XLI), utilities (XLU) and communications (XLC) have rolled over in the last hour, and seem now to be leading the way down across the board.
Comment:
And the 50EMA test...FAILED. In a big way. Looks like it could be headed for the 200EMA next at 2760, but maybe with some choppiness along the way. If it's another straight down day tomorrow, like today, would be looking to see if support exists for perhaps a bounce on Fri. Would imagine any support at 200EMA would be sloppy and not a clean bounce, can't be that easy, right?
Comment:
Looks like we're shooting for 2800, even today, after which not sure we'll see continued momentum to the upside. Maybe to 2825 later in the week, but would be surprised to see a move right back to previous 2880 level without some additional down days along the way. Even at 2880 the 50EMA (which may move a bit lower by the time the level is reached) would be something to watch as overhead resistance.