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Minor pullback fails to do much technical damage

Just past mid-day.. today's pullback has carried prices right down to the lows of the recent 2 week consolidation for S&P, but really tough to make anything of this for both NASDAQ composite or DJIA and both remain near striking distance of new highs, despite this week's minor drawdown-  Until we see indices take out prior week's lows, it's not worth paying this much attention-  Weakness predominantly within Materails and Industrials, both of which are down more than 1.4% while Utilities is the only positive sector.  But Breadth is a miniscule -3/1 down for Advance/Decline while volume flowing in at a LESSER percentage into Down vs UP stocks at only 2/1.. so TRIN right now not even above .75.   Both Dollar and Yields have pulled back from early highs, but the surges in both have been one of the more important technical developments all week in getting above key downtrends that have lasted 6 mths or more.   Small caps and Transports are both laggards today which goes against the recent trend, and Industrials having off 1.5% on some big names like HON, TXT, MAS, URI, FLS though the larger uptrend still very much intact-  For now, its right to buy into pullbacks in S&P to this 2136 level, so the risk/reward is good here with stops very well defined.  A few shorts on the radar today with MNST, FSLR, MLM, VFC all breaking down further. but most of the Industrials weakness should be good to buy given the recent structural progress-   For now, selloff not happening on much negative breadth and hasn't gotten below key areas of support, so still looks buyable here

 

S&P seems to be getting closer.. but for now, Friday's pullback has done little to no technical damage to the tape which has been range-bound for S&P in the last couple weeks and also since mid-July-  Movement UNDER 2136 would have some importance, as would a move back over 2161 initially-  Chart shown is a 2 hour bar chart of the December S&P futures contract