Monday mid-afternoon Technical Video
This morning’s reversal puts S&P within striking distance of breaking trendline support from early July which could happen today UNDER 2820.
This should result in a pullback to test 2798-2800 which has held from mid-July and meaningful to the larger trend.
Breadth is now negative by 2.5/1 margin and Materials, Energy and Financials are the worst performers.. all down more than -0.75%. Tech/Telco the only bright spots and stocks like AAPL still largely ignoring whats happening in the rest of the world- For XLK- breaks of 72.82 would be reason for concern and/or a pullback in the NASDAQ down to earlier lows- For now, 7390 has held on NQ.. but the 2 key areas to watch are 7268 and then 7166. Under the latter would be quite bearish and suggest immediate acceleration.-
A few key developments:
Transports , Industrials and Financials have moved back down under prior breakout highs from June, casting some doubt on the recent breakout
Airlines in particular have made 2 bearish days down. And UNDER 103.31 would be a technical negative in the short run
Aerospace and Defense has rolled over.. and stocks like TXT, NOC remain vulnerable.
Crude has slipped down under 66 and OIH now weak for the last 8 of 10 days- WTI looks technically bearish for a pullback to 64 in the short run, just above June lows
Gold/Silver have both pulled back to undercut the recent stabilization. Casting doubt yet again on these stabilizing with Dollar gains
Healthcare ETF, XLV. - Breaking uptrend and after being one of the strongest ETF in the last 30 days.. second only to Financials. As of now.. +2.38%. looks to weaken
S&P- Pullback down to 2820 important.. UNDER this leads straight to 2800 without too much trouble
S&P- earlier bounce looks to have failed. And a move under 2820 given the extent of this 20 point bounce, should allow for downside acceleration
XLV- Healthcare.. one of the better performing sectors in the last month. Now rolling over on schedule given the recent counter-trend sell
Additional weakness here likely