THE CLOSE- MARKET STAVES OFF DEEPER TROUBLE

Continued greetings from Berlin. Tonight’s radio program was pre-taped in the first hour of trading…before the midday deep selloff and before the decent reversal by the close.

The final outcome of the day:

The Dow and S&P both undercut the 50 day and finished right on top of the moving average. Important. When an index undercuts and reverses, it tells us for now, things “should” hold….but that does not mean we get upside.

The Financials held support and reversed almost all the way today. Financials broke initial support and looked headed for a possible another leg down. But again, that was staved off by the close.

The SEMIS undercut the level we told you about…at 984 and finished right back on the number. Again, a potentially important reversal.

A few other things stuck out:

Gold moves above near term resistance but just near term.

Same for the bond market.

An area we told you was potentially emerging is housing. It stays constructive as the pullback looks to be over.

A few important ETFs based on sectors also held at important areas including industrials and technology.

All in all, an important day? Notice the question mark. Without a doubt, geopolitical news is fluid but we tend to believe it is not the news, it is how markets react to the news. Thursday will provide big earnings in a few important financials. Could be meaningful!