|To: Bucky Katt who wrote (45402)||4/11/2012 9:32:10 AM|
|From: Rangle||Read Replies (2) | Respond to of 46200|
|The most bearish action of late in four months on a percentage basis for the S&P (-4.5% off last week's high), the worst one day loss in four months yesterday with it ending Tuesday down for the fifth day in a row, its longest losing streak in five months. There were virtually no signs of buy side interest yesterday but the recent slump left shorter term market indicators overextended, TRIN at an unusually high level for the second day in a row (above 2.0) with VIX higher for the eighth day in a row. Although the market ended near lows yesterday, the pre-market bias is firmly in the bullish camp in the wake of lower yields in Europe and a better than expected opening salvo to earnings season (AA). An initial resistance is in the 1365/1365 area with the 50 day ema/sma, which are important intraday and on a close basis at 1368/1372 |
Tuesday Summary: A mixed, choppy open for the stock indices on Tuesday as technology (semi/AAPL) mildly outperformed. There were no positive catalysts to alter the weaker bias that has persisted for the last week and Monday's technical breakdown following disappointing jobs data (reported Fri). Early economic news (Wholesale Inventories +0.9% vs. +0.5%) had little impact with a renewed focus on Euro debt issues (rising yields) and lower small-business sentiment cited for short term trend extension. The S&P has put together its worst performance since the 5% decline in Dec leaving it down for the fifth session in a row and below its 50 sma/ema for the first time also since Dec. The weakest sectors on a percentage basis included: Housing XHB -4.2%, Paper -3.4%, Disk Drive -3.3%, Casino -3%, Healthcare -2.9%, Biotech IBB -2.7%, Auto Parts -2.7%, Retail XRT -2.7%, Airline FAA -2.6%, Steel SLX -2.5%, Broker IAI -2.4%, Finance XLF -2.1%, Software IGV -2.1%, Bank KBE -2.1%, Materials XLB -2%, Industrial XLI -2%, Transports IYT -2%. Limited gains have been posted in Gold Miners GDX +1.2%, Gold GLD +1.1%, Silver SLV +0.6% and Treasuries.
I been buying the dips...gl