Market Observations 07/21/06
Dell warned -12% at a 5 yr low, AMD Q2 revenue +53% but fell short of sales targets due to aggressive price cuts from rival Intel, punished -13%.
Capital One Financial -10%, PMC-Sierra -23% hitting a 52-week low, all on very high volume. Ford Motor hit a 52-week low intraday as everything got slapped down today cept crude futures.
Wen, the RUT bounced from 670 to 702, as short sellers ran for the hills. Like we said it would, Thu the RUT fell to MAX PAIN at 685 and today it fell past 670 intraday.
Passing the 06/14 low by hitting 668.58 validates a small 1-5 down wave pattern started 05/10. Is the patttern complete? Does an ABC UP commence??
Whether this would be another headfake to the upside before the next BIG step down or a genuine market turn remains to be seen. The possibility exists that a 1 down ended 06/14, a 2 up ended 07/03 and we are still in a larger 3 down.
RTH Retailers fell 1st 08/01/05 and after 3 tops reconfirmed 05/08, falling from 900DMA. DJUA Utilities fell 10/04/05 and have just formed a 3rd top, but remain above critical DMA.
NDX Tech fell 01/11 and reconfirmed from a 3rd top 05/10, sitting on 900 DMA. XOI Oil & energy fell 04/25 and reconfirmed from 2nd top 07/07, but still remains above critical DMA.
XAU Metals fell 05/10, and sliced through 100DMA to rest on 200DMA today. Tech, Energy & Metals are plunging again.
DJTA Transports fell 05/10 and reconfirmed from a 2nd top 07/03 and a -7% fall over the last 2 days to rest on 200 DMA. DJIA Industrials fell 05/10, breaking 300 DMA 07/14, but rebounding to cling from 200 DMA as we speak.
This is the chain, can it be broken?? Violent point swings are not a good sign. Next weeks 20 year TIPS, 2yr & 5 yr note auctions could send us down another notch or two.
Watch the market leader 660 & 650 RUT as downside support and 690 as upside resistance for clues. Breaking 650 could send us plunging to 600 and below.
Capital One Financial -10%, PMC-Sierra -23% hitting a 52-week low, all on very high volume. Ford Motor hit a 52-week low intraday as everything got slapped down today cept crude futures.
Wen, the RUT bounced from 670 to 702, as short sellers ran for the hills. Like we said it would, Thu the RUT fell to MAX PAIN at 685 and today it fell past 670 intraday.
Passing the 06/14 low by hitting 668.58 validates a small 1-5 down wave pattern started 05/10. Is the patttern complete? Does an ABC UP commence??
Whether this would be another headfake to the upside before the next BIG step down or a genuine market turn remains to be seen. The possibility exists that a 1 down ended 06/14, a 2 up ended 07/03 and we are still in a larger 3 down.
RTH Retailers fell 1st 08/01/05 and after 3 tops reconfirmed 05/08, falling from 900DMA. DJUA Utilities fell 10/04/05 and have just formed a 3rd top, but remain above critical DMA.
NDX Tech fell 01/11 and reconfirmed from a 3rd top 05/10, sitting on 900 DMA. XOI Oil & energy fell 04/25 and reconfirmed from 2nd top 07/07, but still remains above critical DMA.
XAU Metals fell 05/10, and sliced through 100DMA to rest on 200DMA today. Tech, Energy & Metals are plunging again.
DJTA Transports fell 05/10 and reconfirmed from a 2nd top 07/03 and a -7% fall over the last 2 days to rest on 200 DMA. DJIA Industrials fell 05/10, breaking 300 DMA 07/14, but rebounding to cling from 200 DMA as we speak.
This is the chain, can it be broken?? Violent point swings are not a good sign. Next weeks 20 year TIPS, 2yr & 5 yr note auctions could send us down another notch or two.
Watch the market leader 660 & 650 RUT as downside support and 690 as upside resistance for clues. Breaking 650 could send us plunging to 600 and below.
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