Stocks...
Nasd 100…4265 is the first target.
Spu’s…1965-75 is the first buy before you sell level.
DAX…led the rally in 2014 and led the down on this break. 10,000 +- a few was the breakout level.
This will continue to be an important pivot.
GOOGL...671-3 is support and the downside pivot.
NFLX…110.50 is the weekly hold #. Below this can break another 10%.
123.40 is the weekly ORL#. There is no chance of recovery over this level.
UNH...first set of sell stops are @ 119.05 (the weekly ORL #)the monthly macro sell stops are @ 116.66. 111 is the first level to start looking for a bounce.
XLV…73.90 is the weekly ORL #.
IBB…342 is the 200 DMA, a level not seen since the Oct 2014 break which came in then @ 251.
FB…91.19 is the weekly ORL#
Bonds …
30 Yr. Bonds…do not fade the up.
TLT…126.70 is Fib resistance.
Bunds…155.74 is the reversal qtrly low which precipitated last qtr’s big sell off.
Just be aware of the level. This is where many investors sold the Bunds not buying the negative yield proposition in Europe.
FX…
AUD/USD…73.02 is unchanged on the month.
EURO…is being bought on the crosses against the Yen and the Commodity currencies.
Expect this to continue with a risk off board.
The Euro could very well test it’s 200 DMA @ 113.36.
Commodities…
OIL…use 41.15 for market tone. Short covering above/pervasive weakness below.
OIL…use 41.15 for market tone. Short covering above/pervasive weakness below.
Gold…1165-75 is first yearly fib retrace resistance. The move should eventually get close to 1190.
General Comments or Valuable Insight
The high volume down was not what I initially expected when I wrote @ 3:30 CDT yesterday.
The rats are leaving the ship. I’m in sell the big rally mode (any rally mode) in Equity related instruments until I get a buy signal, which is doubtful before mid week next.
Then and only then will it be time to go shopping for names.
Yesterday was the first day that investors actually liquidated equities. The other breaks were low volume affairs with nothing for sale, so it was significant.
The big cap roach motel stocks have not seen enough capitulation for a low.
This can go much lower than all the talking heads think. The more they tell you to buy the lower the break can go.
