Today was a nasty day for most longs today (with the exception of a few like $YHOO). Going into today I was Tweeting that the Risk to Reward ratio was definitely in the favor of the bears, and that there was resistance right above us. We basically had a "textbook" move today. Gapped up into resistance and then hit it, and sold off. No special action here -- it was a simple, clean, actionable sell-off. Going into Monday I would feel comfortable being short but I would look to cover some down near the bottom of this channel we were just in. For the longs, I would say, be careful. Don't rush it. A fall to about the 200 SMA, maybe a little below would be nice to maybe see if we could test some longs. But if you are just a swing-trader, stay away, this is not the kind of environment you should be putting yourself in.
The techs, or QQQ's look pretty ugly too. I think we could test the 64.60 area at least now that Apple has broken it's 200 SMA with some strength. Not good for the bulls here. $QQQ
As for google, as I said yesterday, I thought it could see some continuation. It did and by doing so, it showed great relative strength. I am still standing by a test of around 706 in the next couple weeks. $GOOG
Apple, you probably should have not been in today. It did not show any commitment over the 603 level and formed 2 bottoming tails that really didn't show any conviction. Today after falling below it's 200 SMA I think it could go to about 568 then that could be the area to maybe try another swing -- this only works however if there is conviction and clean reversal signal. $AAPL
Banks are overall pretty good still. We did sell off today, like the whole market, but it was with less volume than yesterday which is good. I feel like we could see a little more downside however in the banks. If the price ever gets down to about 15.75 I think it would be save to test some more longs. $XLF
The homebuilders are still the leaders, but they also showed off - which was expected with the conditions we were in. I would like to see it get back into it's channel and maybe test the support of the channel down around 24.40 for a great buy. $XHB
The techs, or QQQ's look pretty ugly too. I think we could test the 64.60 area at least now that Apple has broken it's 200 SMA with some strength. Not good for the bulls here. $QQQ
As for google, as I said yesterday, I thought it could see some continuation. It did and by doing so, it showed great relative strength. I am still standing by a test of around 706 in the next couple weeks. $GOOG
Apple, you probably should have not been in today. It did not show any commitment over the 603 level and formed 2 bottoming tails that really didn't show any conviction. Today after falling below it's 200 SMA I think it could go to about 568 then that could be the area to maybe try another swing -- this only works however if there is conviction and clean reversal signal. $AAPL
Banks are overall pretty good still. We did sell off today, like the whole market, but it was with less volume than yesterday which is good. I feel like we could see a little more downside however in the banks. If the price ever gets down to about 15.75 I think it would be save to test some more longs. $XLF
The homebuilders are still the leaders, but they also showed off - which was expected with the conditions we were in. I would like to see it get back into it's channel and maybe test the support of the channel down around 24.40 for a great buy. $XHB
