{+++} For the day the SPX/DOW were -0.60%, and the NDX/NAZ were -0.70%. Bonds added 1 tick, Crude slipped $1.15, Gold slid $17, and the USD was lower. Medium term support drops to the 1680 and 1628 pivots, with resistance at the 1699 and 1762 pivots. Tomorrow: Consumer credit at 3:00.
Short term support is at the 1680 level and SPX 1658-1667, with resistance now at 1699 and SPX 1717. Short term momentum was quite oversold at today’s low.
All of the ETF’s that I follow were down today, but what jumped out at me was the the XHB (housing) and Biotech (IBB) sector.
As you can see below, IBB failed right at the top of the channel today. This is either a short short breather or the start of a more sustained move lower. Only time will tell.
XHB also failed at its short term downtrend line. That potentially bullish inverse head and shoulder pattern is now also in jeopardy.
It’s still a buy the dip market until it isn’t, so this may just be another little buyable pullback. More Fed governors will speak this week and just like politicians, they all have ant opinion. Today, a normally dovish governor, got a little hawkish, and that started to upset the apple cart.
See you in the morning.