A good hold?

You know our stance. It is simple. While the major indices continue to be range-bound (with a little dose of downside recently), many areas of the market remain in poor shape. That has not changed…BUT THE SHORTER TERM ACTION MAY HAVE CHANGED. By the close, Tuesday’s action felt like a market being sold out on a near term basis as the Nasdaq-types were being slaughtered again, only to reverse a good portion of it. On top of that, the very important SEMIS and BIOTECHS found supportive action right where they needed to…at the all-important 50 day average. The 50 day average is a place where the big money stands up to defend on pullbacks.

Strongest action remains in a slew of financials and a decent amount of growth names. Transports continue to lag the most. Remember, there is no chance of a bear market of consequence if financials continue to have the bid.

Here are your support levels. A break below and you will here loud noises from us.

DOW 17,600. Remains between the 50 and 200 day.

S&P 2067 and then 2040. Remains between the 50 and the 200 day.
NASDAQ  50 day at 5009…then 4888 and 4825.
NASDAQ 100 4350 and then 4280…it remains just under the 50 day.

TRANSPORTS remain the laggard and remain in bearish market process.

NYSE went down to the 200 day at 10,884 and held Tuesday.

RUSSELL 2000 at 1233 and then farther away at 1205.

One last note…watching OIL prices as it has been range-bound for about 9 weeks. Looks to us it is going to try to move out of range to the upside.

China Moves Closer to Joining MSCI’s Widely Tracked Emerging Markets Index

Source: http://www.wsj.com/articles/chinese-stocks-wont-yet-join-mscis-widely-tracked-emerging-markets-index-1433885346

AutoNation CEO Says This Is What Drove Car Sales to 10M


Source: http://www.foxbusiness.com/business-leaders/2015/06/08/autonation-ceo-says-this-is-what-drove-car-sales-to-10m/?intcmp=perspectives-horizontal

Required Reading Of The Day

Alibaba’s Ma: China Needs American Products – Fox Business

China Mainland Shares on Track to Be Added to MSCI Indexes – Bloomberg 

Hillary’s Other Bill Problem – WSJ

U.S. Prepares Plan to Send Hundreds More Troops to Iraq – WSJ

The U.S. Economy Can’t Hire Health-Care Workers Fast Enough – Bloomberg

 

 

New Housing Headwind Looms as Fewer Renters Can Afford to Own

Source: http://www.wsj.com/articles/new-housing-crisis-looms-as-fewer-renters-can-afford-to-own-1433698639?mod=trending_now_1

 

America’s Shale Oil Boom Grinding to Halt as OPEC Stands Pat

Source: http://www.bloomberg.com/news/articles/2015-06-08/america-s-shale-oil-boom-grinding-to-halt-as-u-s-forecasts-drop

Ice…see thinner!

We are getting to that point in time again where the major indices are now in the midst of joining all the areas that are already bearish…but first, disclaimer time.

EVERY TIME THE MARKET HAS BEEN IN TROUBLE, THE PIXIE DUST FROM CENTRAL BANKS HAS SAVED THE DAY. WE CANNOT COUNT THAT OUT.

In fact, we do believe markets were entering a bearish phase in September…that led to October…only to have Japan and Europe announce over $2 trillion of printed money. You can also add in the massive easing China started. Those moves turned the market around.

Notwithstanding that, markets are narrower, leadership is thinner, more and more areas have turned down and now the major indices are coming in. We have not had a bear market since the 09 lows. We have not had a correction of consequence in almost 3 years. Just in case, be ready.

If You Think Greece’s Crisis Will End Soon, Think Again

Source: http://www.bloomberg.com/news/articles/2015-06-07/if-you-think-greece-s-crisis-will-end-any-time-soon-think-again