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Mid-day technical Video, Charts of interest- BLOOMBERG TV today 4:20pm EST

1. Wed mid-day Technical Video

https://stme.in/PNhoHQJY11

 

2. My Sit-down with Real Vision interview from 7/31..  warning of market tipping point.  And also suggesting MHK as a technical short for Housing

https://www.youtube.com/watch?v=gGfd3YEi_6w&feature=youtu.be

 

3. I will be on BLOOMBERG TV with Abigail Doolittle.. today at 4:20 EST

 

Decline has been contained for now into mid-day.  But likely we see further selling given what’s happening in Europe.     The break of 2820 led quickly down to near 2800 but markets have tried to stabilize-   Bond yields have pulled back.. the Dollar is still higher, Gold and Crude are weakening and the Metals stocks have been hit very hard.-  Breadth which started out at 4/1 has lessened to around -2.5/1  while volume still much heavier into Down stocks vs up-  and at 4/1 down.. is creating a TRIN of 1.75.  high

Energy being very hard hit.  But noticeable that TECH is down 1.3%.. along with discretionary-  2 of the former leaders-  IF NASDAQ 100 and COMP break 7158 and 7600 respectively.  Than US market should experience a quick 4-5% loss into end of August.    Note,  EUROPE breaking down today with DAX, IBEX and Italy’s FTSEMIB on the brink.

Stay defensive.  Favor Utilities.  Staples. And avoid Tech, Fins, Industrials 

 

THESE LEVELS ARE IMPORTANT FOR THE DAYS AHEAD

SPX- 2798-2800 key- Under on a close leads to 2745-52, then 2700-8- the latter being a 50% retrace and edge of channel support

NASDAQ COMP-  7600-   under leads to 7200 into late Aug

NDX-  7158-  UNDER leads to 6830-7

DJIA-  UNDER 25120 leads down to 24350

 

 

SPX cash-  Area at 2750 is near the bottom of this channel.  I think this will be revisited.. but do not expect a larger move down

August 15 1.gif

 

DJIA quite a bit weaker and has already violated early Aug lows-  NASDAQ of course showing divergence in NOT making a new high over July.

Now down to key levels.  I think DJIA should weaken down to 24350

August 15 2.jpg

 

Massive divergence between US and Europe and Asia right now.  But this doesn’t necessarily signal that US has to join suit in turning down to join the others

This divergence can continue.  Still right to expect Europe to underperform

August 15 3.gif

 

EUROPE is weakening worse than US.  With breakdowns in SX5e and now today the DAX and also SPANISH IBEX breaking

August 15 4.gif