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Minor recovery Post Coup Threat, but near-term challenges remain

Trend bullish but stretched and risk/reward poor in the short run for new longs- Futures have regained losses following Turkish coup threat, and positive earnings out of BAC and HAS are minor positives this am.  DXY largely unchanged while 10yr yields showing further near-term strength.  Financials could outperform today given BAC beat with yield gains, but here also, XLF facing very strong resistance 23.80-24 so most of Banks, Broker dealers better to buy on dips-  Regionals have started to meaningfully outperform over Large Banks.  For this am, Advancing stocks premkt are GRPN, LC, ARMH, FMSA while on the downside: DDD, HE, FOE, SSYS, PACD, and WAIR-  Key area to sell S&P futures lies near 2163-5, then 2175 while pivot at 2153 for today, and then 2142-  For today, look to sell into early gains as 10% gains in as many trading days is quite stretched while many of the S&P SECTOR ETFs up against prior highs and/or trendline resistance-  Today's Weekly Technical Perspective discusses the Financials in a lot more detail and breaks down some of the key Sub-sector relationships-  which is at http://newtonadvisor.com/retailLet me know if you have questions

 

2 straight days of sideways consolidation post 170 point 9% rally-  Still not too convincing of an imminent decline, and 2143 will need to be violated at a minimum-  For now the 3-day range near 2168 important and if taken out should take futures right up to 2175 as listed above with 2183-5 over-

 

Financials will continue to be in focus given today's Yield gains while BAC has delivered an upside earnings surprise- and 23.80-24 important for XLF and for now, looks like a poor risk/reward after this recent bounce