We told you to watch the financials!
On Monday, we told you to watch financials as they were gagging. The gagging continued as JP Morgan numbers were not so thrilling. Their action led the market down. There are now more cards coming out of the financial deck in the days ahead but so far, yuck!
As far as the market, what can you say about the see-saw nausea we have seen this week? Just leave no doubt it is getting tougher as the indices trade in a wide range with gaps and reversals both ways.
But underneath the surface, things have deteriorated more but not to the point where the majors have broken recent support. With Wednesday’s late bounce, we think they hold for this second but just in case, here are those levels to watch:
Dow 17262 and then 17067.
S&P 1988 and then 1972.
NASDAQ 4547.
A break below those levels will make a deteriorating market much worse.
One last note: We have been bearish on energy for the past 6 months. Near term, we think there is a chance a bounce about to occur. We have no clue how tradable it will be but this area is about as oversold a group as we have seen in a long time.
Gary – Great show last night (1/14/15) – your commentary well thought out and very professionally delivered. Kudos to you & your staff! Phil Hughes
Gary – Great show last night (1/14/15). Well thought out, very professionally delivered, insightful and educational for the listeners. Kudos to you & your staff. Phil Hughes