Got that bounce in most sectors but obviously the bounce was sold into. Interesting that breadth indicators were very positive today despite the big reversals in just about everything. AMD, being a major component of the $SOX index, may put pressure on some other semiconductors, specifically INTC. If INTC comes under pressure because of AMD’s warning today and if AAPL doesn’t end its free fall, then that will doubtless put more pressure on $COMPQ and $NDX, and the Dow.
$SPX put in a grave stone doji today which is a potential reversal candle; however, it’s just a candle unless $SPX can close above today’s high of 1443.90 before it closes below today’s low of 1432.84. JPM & WFC report tomorrow morning before the bell. If these two do okay then you just have to expect $SPX to push higher and maybe close above 1443. Any disappointment from these two probably won’t be taken well by the markets especially since the markets seem to looking for any excuse to sell off lately.
Daily chart of the Q’s showing a clean break of the rising trend line off the June lows. If we get another day or two below that trend line, then I’ll remove it and go with the new falling price channel that is containing the Q’s movements now. If there isn’t a miracle rally tomorrow in the Q’s, then the only hope left for this sector is that the RSI will soon reach the 30 area in what usually indicates an oversold market. The wild card is AAPL and today’s court ruling in favor of Samsung/Google isn’t going to help matters. Until proven otherwise, I think the Q’s need to be avoided.
Last night the mini Dow sold off to the 13227 area and then through the course of the evening it rallied almost 100pts into the cash market open. It then rallied up to 13360 and then dropped nearly 100pts by the close of the regular session. That is one hell of a serious move in both directions and is a perfect example of just how dangerous the markets have become for both camps.
In times such as these, cash is king.