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S&P breaks support as Materials, Healthcare pullback to new lows

SPX's break of the lows of the last couple weeks definitely a minor negative if this were to hold on a close, and breadth coming in around 6/1 negative, volume flowing into DOWN stocks vs UP stocks at around 7/1 .  Materials and Healthcare are both breaking down via their ETFs to new monthly lows today while 2 of the 11 sectors, Energy and Technology, both show Demark TD Sequential sells which could be confirmed on today's close.   Bonds have rallies a bit over the last few hours while no real change in the US Dollar rally and both Crude and Gold hugging the flat line both showing mild losses.   Emerging mkts getting hit much harder than the broader mkt as might be expected given Dollar strength while Transports outperforming SPX by nearly 0.60 bps .  Technically it's tough to put too much stock into one day- however, we are seeing noticeable breakdowns in a few of the laggard sectors even further, and from a pure price standpoint, at current levels we are set to make new multi-day lows in price, breaking the 2-3 week consolidation, which is a definite short-term negative unless immediately recouped.  This time in October has been significant in producing fairly major turns in stocks both in 07 at the highs along with both 02 and 05 as intermediate-term trading lows, so not unimportant to have a high volatility reversal like this in October.  However, the recent breadth slowdown was largely due to the sideways action of the last couple weeks, not really indicative of a lack of strength.  Furthermore, the extent to which bullish sector rotation has helped some of the Key sectors like Financials, Discretionary, Industrials and Transports to begin showing much better relative strength cannot be overlooked and is seen as a bigger positive .  Fear is also going to jump much quicker on this pullback given the already sour mood with the upcoming Election and Put/call ratio right now on Equities has spiked up over 1.. at 1.12 and VIX is up over 10% which might be expected.   Technically there remains little support here to consider buying given the break of prior lows and closing here should pullback further to test a more important level at 2119 for SPX.. So any inability to reclaim 2144 by the close for SPX cash would warrant hedging and expecting further weakness in the short run, and would need to reclaim this 2144 level to have conviction about a false breakdown and really get BACK over yesterday's highs of 2169-   While not wanting to make any type of big call intra-day just past Europe's close, I do find the price action to be unsettling, unexpected and worth taking at least some kind of action to protect for the near-term if not recouped into today's close