2 hours left to go, we've seen some interesting signs of NASDAQ starting to lag and turn down, with the SOX pulling back to multi-day lows ahead of tonight's YHOO, INTC earnings announcements. Tomorrow, Wednesday 4/20 marks the 3 month anniversary of our January lows, and these 90 degree cycles sometimes can have some importance in providing at least near-term turns in Equities. (GANN Square of 9 charts pinpoint 2094 on Futures as lying on the same angle as price given this 90 degree anniversary) Furthermore, this period starting in mid-April into June has been historically poor for equities during election years and one of the worst 2 month periods during years of this cycle going back over the last 50-years. For now, no evidence of any backing off under prior day's lows, and we continue to see strength in Financials, Energy and Materials, the latter two which look to still outperform given the Declining USD and recent breakouts in both XLB and XLE. However, XLK being down 0.75% is one thing to concentrate on as a minor negative given the 4% advance in Equities over the last 7 trading days from early April lows near 2026 in S&P Futures and prices are up against the highs of a minor uptrend channel from the last couple weeks- 2100-5 important with 2094 on a close- For now, difficult to call much of a turning point in Equities, until we see evidence of at least multi-day lows being made, but given the positioning of price near the highs, S&P could afford to give up 3-5% and barely make a dent in the rally from mid-February which would be far more attractive to buy from a risk/reward standpoint- Much depends on one's trading discipline and risk tolerance as to the best way to play any pullback with stops. For most, concentrating on what's working (Energy, Metals stocks) might make more sense
For now, this area up near 2100 could turn out to be important given the 90 day anniversary of prior important turns in mid-January.
THE DXY chart is another one to focus on given this week's ECB meeting with the EURUSD showing some evidence of turning higher and Dollar weakness to multiday lows in the DXY leading to above-average strength in the metals and metals stocks along with Energy