A key index of gold stocks is hitting its first level of major potential resistance since its false breakdown to all-time lows in January.
A key index of oil stocks has moved back above its (temporarily broken) 30-year up trendline... for now.
A key index of housing stocks is hitting several layers of overhead resistance.
Time will tell whether today’s selloff is the precursor to a real cannonball shot to the gut of the post-February rally, or merely a glancing blow. The cannonball scenario probably should not be dismissed, however, since the weakness is occurring from the right price levels.
After rallying off major support for the past month, the Global Dow Index is testing its key January breakdown level.
Despite ongoing Central Bank interventions which boost asset prices and acts as a huge wealth transfer tax from the middle class to the rich, corporate earnings are a direct reflection of what is happening in the actual economy. Wall Street has always extrapolated earnings growth indefinitely into the future without taking into account the effects of the normal economic and business cycles. This was the same in 2000 and 2007. Unfortunately, the economy neither forgets nor forgives.
BofAML's Stephen Suttmeier views the 61.8% retracement of the May-Feb decline at 2010.72 as critically important. A failure to close above this retracement would send a bearish message, especially given negatively positioned and falling 100 and 200-day moving averages.
Is the bounce in energy stocks for real?
While the market has climbed from the ground floor all the way back up the elevator shaft, it may find the access to upper floors there rather limited. After rallying 14% in just about 3 weeks, a ratcheting down of upside expectations would certainly seem warranted.
After resolving its former “most interesting” chart status with a massive breakdown in January, Brazil’s Bovespa is back testing that breakdown level in an equally interesting development.
Amid a recent exuberant short-squeeze-driven bounce, the 'real' valuation of the Russell 2000 remains at insanely high levels (and gravely decoupled from credit markets). But as Dana Lyons' explains the market likes to do whatever will fool the most people. So while this level should at least be an interesting one in producing a battle between the Russell 2000 bulls and the bears, it would also be an ideal spot for the market to unleash its shenanigans.
The February stock market bounce has reached a crossroads – will there be another leg higher or has the rally run its course?
The broad NYSE Composite stock market index is testing the level we deemed “must hold” – that broke in January.
Based on the chart of the KBW Bank Index, Jamie Dimon’s decision to purchase shares of JPMorgan may have been well timed... but the credit markets have a very different perspective on what happens next.