Please enable javascript in your browser to view this site!

Indices near lows of the day,while Breadth just mildly negative- Emerging mkt Equities, Currencies hard hit

Less than 20 mins into the Bell, indices remain near the lows, breadth remains less than 2/1 negative though we're continuing to see very heavy volume into Declining vs advancing stocks for the second straight day, with the TRIN showing a reading over 1.6.  reflecting nearly 3/1 volume into Down vs UP issues.   Energy and Industrials remain the hardest hit and MRO, MPC, DVN APC all down more than 4%, while Utilities are bouncing hard as OKE, NRG, WEC carry the group , each with more than 2% gains in trading.   Emerging market Equities are lower by over 1.5% while the Emerging mkt currencies are also being very hard hit today with Turkish Lira, Russian Ruble, and S African Rand all lower by more than 2% after a big bounce in the last couple months.  For the US markets..  S&P looks to be close to support, but could benefit from another 1-2 days on the downside, getting closer to support before any meaningful bounce unfolds into next week-  For now into the bell, difficult to get too positive just yet, and additional weakness looks likely into end of week potentially before indices stabilize.  KEY levels lie near 2029 and then 2007 as likely MAX downside for S&P futures, or2012 for SPX cash-   For now this remains a short-term pullback within an intermediate-term uptrend-  Two charts posted below-  See the differences in the charts below between Daily and weekly


Daily-  Nearing lower area of the Bollinger Band, with momentum having diverged, which signaled the start of the minor weakness in momentum after the initial sharp surge-

Barely any weakness to speak of on a weekly.  Momentum remains positively sloped while prices have just slipped under last week's lows, yet have not even given back an initial 23.6% Retrace of the previous rally

JP Morgan Emerging mkt currency index turning lower after hitting the upper end of this Band-  Additional Emrg mkt currency weakness likely in the next few months given that the index is stretched up at the upper boundary of this pattern