Stripping away all the nonsense and all the blah blah blah, major indices are again holding support into tomorrow’s fake job’s number. All bets are off as it will be the reaction that matters. So…going into tomorrow, the market has been nothing more than a bout of nausea. Foreign markets have been much worse than the U.S.
During today’s action:
- The Dow held just above the 12,300 level for the 3rd time.
- The S&P continues to hold the 1292-1300 level.
- The NASDAQ continues to hold the 2775-2800 area.
- The NDX continues to hold the 2475-2500 area.
- The RUSSELL 2000 continues to hold the 745-750 area.
As long as these areas hold, the market has a chance. A break below will just add another leg down into the all-important, longer-term 200 day moving average. Keep in mind, the NYSE is already below because of its heavy energy component, which has just melted down.
The XLF held the 200 day today. As financials go, the markets usually go. The XLF has held this area 3 times in past weeks and every time…to the penny. I cannot begin to tell you how important it is for the financials to get some footing for the market to go higher.
Keep in mind, there has been a lot of technical damage done in recent weeks….and in most areas of the market.
These areas continue to lead:
- Discount retailers as names like Dollar Tree, Tjx, Rost Stores, Family Dollar and Wal mart are leading.
- Airlines are strong as the price of oil continues to croak. By the way, why isn’t Obama investigating speculators for pushing the price of oil down?
- Housing remains relatively strong but may be in the midst of basing in here. This group reversed up nicely today.
- Defensive issues continue to outperform…foods,drugs,
beverages and household products continue to get good money flows.
We now sit back and wait to hear the overrated fake unemployment number that is being moved around based on politics. I am still looking for the list of millions of names that supposedly have left the work force in order to have the unemployment figure lower than it should be.