Posts Tagged ‘oil’

The ES was lower on the after posting an inside day. The light volume advance on the shortened Friday session likely kept trader’s wallets in their pockets to measure off the half session. The resolution of the inside day should have some punch, especially it is to the upside and keeps short from the initial breakaway gap trapped. The next important level is the 50dma overhead.

The NQ’s had relative strength vs. the broad market all session on the strength of mega-member AAPL. The Naz was higher by 12 on the day, which unlike the SP side, was range expansion rather than a measuring day. There is a big level overhead where the 4/8 Gann line meets the 200dma.

Keep a close eye on the 10-day Trin which is quickly approaching an overbought reading.

The total put/call ratio is still neutral:

Multi sector daily chart:

The NDX/SPX cross is still bearishly below the breakdown level. The overall market will not find confirmed upside momentum until this level is reclaimed by the NDX coming on with sustained relative strength.

With the strength in AAPL it’s no surprise that the Computer Hardware index was the top gun on the day. Expect overhead at the 4/8 level.

The SOX will have overhead where the 50dma, 4/8 level and trend channel meet.

The XAU was mid-range performance wise. Note the 4/8 level just overhead.

The BTK posted an inside day. Price is back above all of tte major moving averages. The active static trend line is the next upside level.

The OSX was the last laggard on the day. Price touched but didn’t break below the 10ema. If price crosses back below the 10ema it will turn the chart back to short-term negative and be in position to complete the unfinished Seeker buy countdown.

Oil:

Gold:

Silver:

The ES was higher by 4 on the day but settled below the opening level. This marks yet another indecisive day for the SPX futures. The Seeker setup count is now 9 days down but bars 8 & 9 are too high to qualify a bounce.

The NQ futures are still below the 10ema and the key 8/8 Murrey math level. This is the 5th candle in basically the same range so when this mini-pattern breaks out it should have some punch. Note that the MACD is negative but still above the zero line.

The 10-day Trin is still in the oversold area:

Multi sector daily chart:

The SOX/NDX cross is still hovering at range low but has yet to definitively breakdown.

The SPX/TLT cross is still well below the high and is showing a defensive posture from the larger investors.

The NDX continues to lose relative strength. AAPL is the key here and if it breaks down then the NDX and by association the SPX is doomed.

The BTK was the top gun on the day and is poised to challenge the prior high. There is no Seeker count to stand in the way of it taking a shot at the 8/8 level or even the overbought Murrey math levels.

The SOX was stronger than the NDX but posted an inside day. Keep in mind that the close was below all of the major moving averages and the MACD is below the zero line.

The BKX remains below the 8/8 level and needs to get something going.

The OSX made a new low on the move and is using he active static trend line for support. There is a window of opportunity for the bulls to make a move before the MACD loses the zero line. Time is short and if energy is moving lower the overall market will feel the pull.

Oil:

Gold:

Silver:

The ES broke to new highs on the move and has cleared the next level of resistance and is moving deeper into the Murrey math overbought territory.

The NQ futures also hit a new high gaining 48 on the day. Price is beginning to accelerate and get parabolic with a next target of 2812.50.

The 10-day Trin recently hit the overbought threshold but has yet to produce a reversal. The overall design still has overbought energy to be released.

Multi sector daily chart:

The NDX continues to show relative strength vs. SPX:

The BTK was the top gun on the day pivoting off support from the rising 50dma.

The XAU was stronger than the broad market which is a cause for concern to the bulls since a defensive sector is attracting money.

The BKX was up 1.5% which makes a new closing high but not new absolute high on the move.

The SOX made a new high on the move. Keep in mind that the Seeker still has an active sell signal in place and the risk level has yet to be violated.

The OSX was the last laggard on the day and continues to be an underperformer.

Oil:

Gold:

Silver:

The ES continues to have trouble with the 8/8 level and Monday gave back 4 handles. Price settled right on the important 10ema. A close below this level would be the first sign of a short-term change in trend.

The NQ futures we also lower on the day and settled right around the 10ema. Keep in mind that the Seeker 9-13-9 pattern has not yet released any of its energy to the downside. The first target after a CIT will be the active static trend line around 2550.

Multi sector daily chart:

The 10-day Trin is still neutral:

The SOX/NDX cross pair took a huge hit. A break to a new low would be bearish and likely break the broader NDX100.

The NDX/SPX cross is also flashing a warning sign. The chart has yet to produce a new high where the relative strength of the NDX could really assert itself and now it could possibly be rolling over. A break under 1.90 will be the deal breaker.

The XOI was the best performing sector. It was lower on the day by a fraction but bullishly closed near the high.

The BKX is still range bound but there is still an active Seeker sell signal that has yet to influence price.

The OSX is backing off and should find better support after it gets back into the pattern and near the moving averages which are all in the same price neighborhood.

The BTK continues to roll over and is getting closer to first support at the static trend line (red). Keep in mind that with the gap on the chart the static trend line level is very important and will be an important break level if breeched.

The XAU offered little safety and was much weaker than the major averages on the day. The chart continues to print lower high after lower high.

The SOX was the last laggard on the day and broke through the neck line of the head and shoulders pattern. This projects price roughly down to the midpoint of the trend channel for the typical H & S measured move.

Oil:

Gold:

SLV:

The ES finished the day about unchanged. Momentum seems to be waning but price must break before any downside consideration can be given. The 9th candle of the current setup recycled the Seeker countdown so the process must start over.

The NQ aggressively surged at the end of the day to close up on the day by 8. Keep a close eye on the active Seeker risk level.

The 10-day Trin is still not overbought:

Multi sector daily chart:

The NDX continues to bullishly keep its relative strength vs. the SPX.

The SOX was the top performing major sector on the day. Price remains boxed up in the recent range and below the boundary of the upper channel. Keep in mind that a break higher will likely produce a Seeker sell signal.

The OSX was little changed and continues to ride the wedge without breaking.

The BKX was a cause for concern from the day’s performance. Much weaker than the broad market and closing a new 5 day low.

Set an alarm for a break under last week’s low in the BTK. If the market rolls this could be a very nice sector to find overbought stocks that have room to fall before real support.

Oil:

Gold:

The ES ended the day up one handle. The chart still has the open gap from the holiday but today’s close was above the open. Price remains above all the major MA’s.

NQ futures were much stronger than the broad market, gaining 13 on the day. Price settled right at Tuesday’s high which now is an important break level. The CCI is getting a little extended but not yet overbought.

The VIX was again notably lower on the day. Keep looking at the VIX as a near-term directional indicator.

The BKX was the best performing major sector on the day. The area to watch is where the 200dma will converge with the October high. This should be the initial trade to target and formidable resistance if reached.

The XAU posted a measuring day, consolidating Tuesday’s big move. Alarm a break over today’s high for a continuation to the 50dma.

The SOX did very little and is currently trapped between the 10 and 50 period moving averages.

The oil-services stocks were held in check by the 4/8 Gann level. There is a perfect double top in place this week to use as a point of reference. Set an alarm for 226.

The BTK was the last laggard. Keep in mind that there is a fresh 9 bar upside run in place that may need more time recharge.

Gold was higher on the day. Expect decent resistance at 1625 where the 200dma lines up with the 2/8 Gann level.

Oil measured off yesterday’s gain but held pretty strong making a new high close. A break over the current 2 day high puts the +2/8 level in play.

The ES closed unchanged after expanding the upside range of the current run. Expect that the 200dma might be a near-term draw.

NQ futures were higher by 7 on the day but couldn’t break above the active DTL. Note the proximity of the 200dma which could be a draw in a light volume environment.

Multi sector daily chart:

Note how in the chart below the NYSE cumulative A/D line is bullishly leading the broad market, represented by the SPX.

The BTK was the top gun on the day closing above the 50dma for the first time since October. Keep in mind that there is still an active Seeker buy signal active.

The SOX remains below the major moving averages.

The OSX was almost unchanged on the day with an active Seeker sell signal in play.

The BKX is having trouble at the key 40 level:

The XBD broker-dealer index posted a potential reversal day which would be bad news for the broader financials.

The XAU could be forming a bearish lower reverse cup so set an alarm for a break under 178.

Gold was slightly lower on the day :

Oil broke nicely above the 100 level and is closing in on the recent highs at 102.75.

The ES broke very hard and violated the key support at 1250 and ran all the way down to the next fib at 1203. Price is now below the 50dma and using the gap window as support. If the decline continues, the gap all the way down at 1150 may come into play.

The NQ futures filled the open gap at 2225 and lost the support of the 4/8 Gann level in the process. Like the ES futures there is a large all the way down at the recent low of 2150.

Multi sector daily chart:

The NYSE 10-day Trin is getting more oversold recording 1.46 on Wednesday’s close.

The put/call ratio advanced but did not record a climatic reading;

The previously lagging BKX was relatively strong on the day and managed to record an inside day. Since today’s candle was inside the previous day’s range, there is extra energy wound up in the pattern.

The BTK is now 12 days down in the Seeker count and could form a nice candle if the November gap is filled.

The SOX settled slightly below DTL and is only 5 days down in the Seeker setup.

The XAU is very close to a new low on the move. Major support lies at the 175 0/8 Gann level.

The OSX was the last laggard on the day. The Seeker 13 exhaustion signal is pressing price lower and the current setup count is still immature. The pattern is now aggressively 3 day down from the most recent up candle so expect some kind of relief bounce before more downside.

Gold was sharply lower, losing the 200dma in the process. Key support is in the 1535 are where price bottomed out in September.

Oil was down big settling below the recent range support. Next support is 91.97.

The ES reversed sharply intraday after gapping up and then trading above yesterday’s high. Price settled right at the key 1220 area discussed in the prior report. The current setup favors that the 1200 gap is likely to fill.

NQ futures were lower by 23 which, at least temporarily, puts price below the 50 and 200dmas. 2250 is a key gap window and doesn’t “fill” until the 2225 area.

Multi sector daily chart:

The NDX is moving in tandem with the SPX but still has some positive relative strength remaining. A cross where the NDX becomes weaker than the SPX would be very, very bearish.

The OSX continues to bearishly lag crude futures. This usually results in negative price action in the futures as they ultimately trend in the direction of the underlying stocks.

Semiconductors are still bearishly lagging the overall NDX.

The NYSE 10-day Trin is once again at the 1.35 oversold threshold.

The BTK was the top gun on the day.

The BKX is now back below all the major moving averages. There is minor support right here at the 37.50 level. There is more important support at 34.37.

The OSX closes below yesterday’s low and was relatively weak even with higher oil prices. Keep in mind that there is a fresh Seeker 13 exhaustion signal in play.

The SOX was awful–much weaker than the Naz or SP. Keep a close eye on the minor up sloping DTL which lines up with the open gap from 11/29.

The XAU is picking up speed to the downside and has settled below the active static trend line. Next support is in the 180 area.

Oil was higher by $2+:

Gold broke very hard and hit the 0/8 Gann level. The Seeker setup is only 4 days down. Set an alarm for a break under the 200dma which could trigger some stops.

The ES settled up 9 handles on the day, close to the high of the recent range. Note that the pattern is now 8 days up. This is the first settlement above the 200dma on this impulse.

The NQ futures were not as strong as the financially influenced ES. Price was unchanged on the day and the close was below the intraday high of the move.

Multi sector daily chart:

The 10-day Trin remains neutral:

The put/call ratio has yet to record a climatic spike to the downside:

The broker-dealer index was the top gun on the day and is now 8 days up.

The SOX outperformed the Naz and closed at a new high on the move. The next challenge is the September high.

The BKX was up 1% and is just below prior resistance at the 40 level.

The XAU did nothing and posted a narrow range inside day.

The BTK continues to hang on by a thread.

The OSX was the last laggard on the day, using the 10ema for intraday support. Note that the Seeker has an active 13 sell signal in place.

Gold was higher by 14 on the day.

Oil was weaker than the market, just holding above 100.

The ES gained 37 on the day all of which came from a huge gap up. The oversold energy took trade up to a key area just below the 50dma and below the 1197 gap window. The technicals remain negative but there is enough oversold energy in the pattern to continue higher.

NQ futures posted a stronger day because there was some positive distance between the open and close (note how this is seen in the white body of the NQ candle while the ES candle was a doji). 2225 is the key level here which is the gap level where a vacuum lies until price reaches 2250.

Multi sector daily chart:

The 10-day Trin is retreating from the extremely oversold reading above 2 and still has a ton of potential upside energy. In the chart below note how the previous spikes lead to multi-day advances that covered good range.

The BTK was the top performing major sector pivoting off the 0/8 Gann level.

The XBD Broker-Dealer index also bounced off a key level. Keep an eye on MS, GS and the others.

The OSX found support exactly at the lower window of the right shoulder. The pattern is still intact.

The SOX traded with the market and is still below all the minor and major moving averages.

The BKX was weak relative to the market and continues to be a concern. Index member BAC barely closed up on the day.

Gold was higher by 28:

Oil was much higher intraday but settled up some. The 100 level is the level that needs to be taken. Price remains above the major ma’s.

The ES posted and odd candle to begin the week. It opened in the area of the 1250 4/8 Gann level, then tanked near Friday’s low, reversed and settled HOD. While trade this week will likely be lower volume because of the quasi holiday. Note the gap overhead that is the door to the 200dma at 1269.

The NQ futures were higher by 19 on the day and still have relative strength vs. the ES side of the market. The static trend line at 2414 is the near term trade-to-target.

The 10-day Trin is still a little oversold:

The put/call ratio closed at 0.53 which strongly favors the short side of the tape on Tuesday. This is a very extreme reading.

Crude futures are leading the OSX right now which is generally bearish and implies that oil will follow the underlying stocks and turn lower.

The SOX continues to bearishly underperform the NDX.

The XAU and gold futures are trading in lockstep so there is nothing special happening here.

The XAU was by far the strongest sector on the day up 3%. The next important price level is the active static trend line (green).

The BKX is still in last week’s range. The broken DTL is still dominating price action.

The OSX traded in line with the market, nothing new technically.

The SOX was inside of Friday’s range and was relatively weak vs. the Naz.

The BTK was very weak and the last laggard on the day, hobbled by the overweighting of VRTX in the index.

Gold was very strong up 41 on the day. Note the key overhead at 1800.

Oil settled above the 200dma for the first time since July..

The ES gapped below the 200dma and then lost more ground to close on the lows down 32 on the day. Price is still above the 10ema and as long as it remains so is still short-term bullish. One bearish feature was that price settled below the low closes of both March and June 2011.

The NQ futures settled right at the midpoint of the trend channel and also above the 10ema. Keep a close eye on the active static trend line which continues to be bull repellent.

A funny thing happened on the way to the best performing October in decades…….it moves so fast that the 10-day Trin never had a chance to record an overbought reading! The NYSE Trin is closer to an oversold rather than overbought reading. Good news for the bulls.

The put/call ratio is neutral.

Multi sector daily chart:

The Dow Transports rallied exactly to the prior breakdown and 200dma and found failure. This is not unusual and doesn’t mean that the advance has terminated it is typical of price action that is extended and testing a major level.

The SOX declined back to the September high. This is key near-term support.

The XAU is midrange and otherwise featureless.

The BKX was much weaker than the broad market and retreated back to the very important 40 level. It is very important for this leading index to hold the 38 level. If this cannel low is lost the market is truly sick and heading lower.

The OSX is still working in a very complex pattern. The most important part of the puzzle will be taking out the down sloping overhead DTL.

Gold was a little lower on the day. Look to the live angle to hold price in the very short term.

Oil is trapped between the 200dma and the 4/8 Gann level.

The ES is in the retreat mode from the 1250 area. This does not necessarily indicate failure just the formidable nature of a major level. The next few candles will tell the tale and reveal the true nature of the tape. For now keep a close eye on how price interacts with the 10ema.

The NQ futures lost 53 on the session and settled right at the midpoint of the active channel. Price is still bullishly above the 200dma. Expect interest from both the bulls and bears at this level.

The 10-day NYSE Trin is moving back towards the 1.35 oversold threshold which will reload the market with upside energy.

The Dow/gold ratio has yet to dicisively break the trend in favor of equities over hard assets.

Multi sector daily chart:

The defensive XAU was top gun on the day. The 200 level is important since it’s the Gann 4/8 level.

The SOX was relatively strong and posted an inside day. The September highs remain the level to take.

The OSX also posted an inside day. Keep a close eye on the rising 10ema which is key near-term support.

The BTK traded inside yesterday’s range and was about even with the relative performance of the NDX.

The BKX failed at the 40 level and was initially rejected by the prior downtrend. This is likely the key sector to watch in the next few days.

Gold was the top performer on the day climbing all the way back up to the broken DTL.

Oil reached up to touch the 200dma. Note that the CCI is getting close to short-term overbought.

The ES closed at a new high on the move gaining 29 on the day. Price exactly touched the prior intraday high on the move. Also, the Seeker recorded the first completed 9 bar run since early August. Not only was the ES 9 bars up but there were 1200 individual stocks 9 days up. This is a cue for either price to pause or retrace.

NQ futures were higher by 42 on the day and recorded 9 bars up on the Seeker. On the Naz side note that neither day 8 nor 9 were higher than both days 6 and 7 which disqualifies the 9 bar stop.

The 10-day NYSE Trin is still hovering just above the 0.85 overbought threshold.

Multi sector daily chart:

The BKX was the top gun on the day but still remains below the key 40 breakout level.

The OSX is still contained below the key 220 level. Note the formation of the recent candles.

The SOX is 9 days up but below the close of day 7 which disqualifies the 9 bar stop.

The BTK did little on the day and is contained below the 50dma.

The XAU was the last laggard on the day but did recoup a nasty intraday drop.

Gold broke below the recent lows and is getting some distance away from the DTL.

Oil broke out above the DTL but also recorded 9 days up.

The ES recorded a first day down off the formidable 1225 level losing 25 on the day. There was no new high recorded on the move thus far. Expect choppy action through earnings season and a 3 candle pullback that may take more than 3 days to trace out.

The NQ futures were lower by 46 on the day. Key support is just below where the 200dma and 10ema converge.

Multi sector daily chart:

The NDX100 continues to bullishly lead the broad market SP500.

The SOX is still lagging the NDX which is cause for concern. So between the strength of the NDX vs. the SPX, and the SOX lagging the NDX one positive washes out the other negative and there is no clear advantage.

The 10-day NYSE Trin dropped to just above the 0.85 overbought threshold. Note that this is the most overbought that the market been since January.

The BTK recorded a one week low and yet was one of the stronger sectors on the day.

The SOX was weaker than the NDX and unable to make good on the unqualified channel break.

The OSX was rejected at the 50dma. Key support is at the 210 level which is the August low.

The BKX was the last laggard on the day down 4%. The trend does not change until 40 is reclaimed.

Gold is still grinding on the DTL, expect a resolution soon.

Oil broke above but closed below the active DTL so there is no change in trend yet.

The ES tacked on another 34 handles to the latest rally. This is a 106 point rally from low close to high close. Price has settled above the 50dma for the first time since July. The only cause for concern tomorrow is the trend termination formation that just completed. While this are often not trend killers when they are found midrange, the usually make for a tough trade the day after the signal. Be flexible to look for short opportunities Tuesday.

The NQ futures were higher by 75 and also have a trend termination formation. The CCI is right on the cusp of overbought.

Nq
Multi sector daily chart:

The 10-day Trin remains full of upside energy:

The BKX was the top gun up 5%. Price remains in a downtrend but a close over the 50dma just a little higher should break the pattern. Be patient and be ready.

The OSX was stronger than the broad market and has resistance just above 210.

The XAU was higher and traded in-line with the market.

The SOX is moving higher and is right at the upper boundary of the active trend channel. A confirmed breakout would be huge for equities.

Gold was higher fueled by the sharp weakness in the $US.

Oil is getting close to the active DTL. A breakout would be positive for equities and bad for gas guzzlers.

The SP gained 11 on the day but recorded a bearish candle closing well below the days open. Note that there is a gap open from Monday’s bar. Fibs have been added to the chart to map the active trading range.

Naz also closed below the open after testing the 200dma intraday. Price did use and hold above the midpoint of the trend channel.

Multi sector daily chart:

The SOX is still confined within the trend channel, note that the 13 exhaustion signal is still on deck.

The BTK is back into the pattern and was slightly stronger than the overall Naz.

The OSX had a big intraday surge but settled only modestly higher, leaving a tall tail on today’s candle.

The BKX went from top gun to last laggard on the day. The key index closed slightly lower on the day. The key break will be when the 40 area is reclaimed.

Gold was higher on the day and could be the first day of a bounce that could take price back near the 1700 breakdown.

Oil was very strong on the day but did little for the energy stocks. This is turning into a very complex and treacherous pattern.

The SP traded a broad range but settled slightly lower on the day. A regression channel has been added to the chart.

The Naz side of the market was actually much more interesting than the SP side. The futures closed up on the day and even tested the 4/8 level. Keep in mind that there are some key moving averages between 2266 and 2283.

Multi sector daily chart:

The 10-day Trin has released most of its oversold energy as it nears the 1.0 baseline. There is still more room for it to travel before it gets overbought at 0.85 or less.

The XAU was the top sector on the day making a new high on the move. Next resistance is the 220.80 static trend line.

The BTK followed through and is approaching the gap window form early August.

The OSX is still in the same range and had relative strength vs. the broad market today.

The SOX did very little and lagged the Naz.

The BKX couldn’t build on yesterday’s gain. The chart is setting a key level at 40.

Oil is trying to push out of the pattern. Resistance areas are the 90 breakdown and then the 50dma.

Gold was higher again and if price exceeds 1850 then a full retest of the high is in the cards.

The NDX currently has relative strength vs. the SPX which is bullish for overall equities.

The OSX is now lagging the underlying oil futures which is usually bearish for crude.

The SOX continues to lag the overall NDX which is generally a bearish condition.

The SP gained 32 in a frustrating gap-‘n-go trading session. Price has picked up momentum and the MACD has solidly crossed which should favor the long side of the ledger. Expect 1250 to be a very key area. This is where the chart broke down in early August and also where the primary trend line resides.

The Naz has relative strength vs. the SP because it is back above the breakdown level. The MACD has turned positive.

Multi sector daily chart:

The put/call ratio took a big hit and highlights the current posture of reacquiring long equity exposure.

The weekly NYSE cumulative a/d line has made a very strong bounce and never buckled below the 2011 lows even as the broad market was recording fresh YTD lows.

The BKX had a very positive day up 4.5% showing good relative strength vs. the broad market.

OSX was higher by 4% but still below the breakdown level of 245 and still contained within the August trading range.

The SOX has broken decisively back into the trend channel. Use 370 for the next bull target.

The BTK has broken above the upper boundary of the pennant. A follow through day will be needed to confirm the change in trend.

The XAU was he last laggard on the day. The gold stocks were a source of funds and the only major sector lower on the day.

Gold was lower:

Oil moved to the upper boundary of the pennant.

The SP added 13 to yesterday’s reversal attempt. Price settled back above the 10ema and has a trade-to-target at the 1190 open gap.

The Naz was higher 15 on the day with a next target of 2175 that would fill the 8/18/11 gap.

Multi sector daily chart:

The BKX was top gun, up 3%, settling back above the 0/8 Gann level. The real test for the financials will be the getting back into an ultimately above the price channel.

The OSX was only slightly higher on the day. Note that price is still below the 10ema and there has been no crossover by the MACD.

The BTK still has more work to do before exiting the triangle pattern.

SOX was unchanged but at a critical area. Set an alarm for a break over Wednesday’s high of 348.68. Getting over this level also puts the trend channel back in play.

The XAU was the last laggard on the day, down 2%. This was fueled by the sharp downside follow through in gold that took the futures down $100 on the day.

Fibonacci retracements have been added to the gold chart. Note how the 0.618 was a key acceleration point. This should add importance on the way down as support.

Oil did very little on the day. Note the pattern that is being traced out on the daily.

The SP posted an unqualified reversal day, blasting away from the 0/8 Gann support. The futures gained 35 on the day to settle right at last week’s gap window.

Naz gained 80 on the day, slightly breaking into the gap. Keep an close eye on the MACD for a positive cross.

Multi sector daily chart:

The 10-day Trin still has a huge amount of negative energy in the tank to fuel upside in equity prices.

The SOX was top gun, keep a close eye on a positive cross in the MACD.

The OSX registered a key reversal candle. The next test will be the 10ema.

The BKX recorded a range low outside day up. This is the best looking potential reversal candle of the day–very clean and no gap. Keep in mind that there is no reversal until there is a follow though.

The BTK is now forming a triangle. Keep an eye on a break of the apex which should be explosive.

The XAU was a source of funds and the only major sector down on the day.

Gold registered a range high outside day down. While this type of pattern has excellent potential for a lasting reversal, it did not come off an overbought Gann level nor did it come after a completed Seeker sell countdown.

Oil was constructively higher on the day, confirming the advance in broad market equities.

The SP posted a flat day after a very large gap up. Price settled at what is becoming a very important magnet, the 1125 level.

Naz was higher by 3 but like the SP closed near the low. Note that the MACD is still in a sell condition.

The 10-day Trin is still oversold at 1.49.

Multi sector daily chart:

The Dow/gold ratio settled at a new low close as investors continue to favor gold over equities.

The XAU was the top performer, up more than 3%. There are 2 key levels just overhead, the 221 static trend line and the 225 8/8 Gann level.

The SOX posted an inside day.

The BTK was weaker than the market, working inside Friday’s range.

The OSX broke below Friday’s low in a show of relative weakness and also make a new low close on the move.

The BKX was the last laggard on the day, moving further into oversold territory in the Gann box. Next support is 34.37 and there is no Seeker support yet for a reversal.

Oil was higher on the day:

Gold made a new high touching 1900. The chart is getting aggressively over bought but there is plenty of room before the next big Gann level at $2k.

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Market Action and Futures Trading with Tradesight Levels from Prior Session ES with Tradesight Levels: NQ with Tradesight Levels: ZN (10-year Treasury Note) with Tradesight Levels: ES with Tradesight Market Directional Tool:

Tradesight Market Overview The SP lost 2 handles on the day as the market worked through the August option cycle unraveling. Price remains boxed up and might remain contained for the rest of the week. Note that the MACD is trying to make a bullish crossover. Naz was much weaker than the broad market losing 24 on the day. Keep in mind that until reclaimed, the 2200 level is key resistance. Multi sector daily chart: The put/call ratio popped above the 1.10 oversold threshold. The Dow/gold ratio recorded a new low close: The XAU was top gun on the day adding 1%. The BKX was stronger than the broad market but is still contained in what could be a bear flag pattern. The OSX is still trapped in the 3 day range: The SOX is still hugging the lower channel. The MACD has made a positive cross but price has not yet confirmed the move. The BTK was weak but slightly stronger than the NDX: Oil: Gold:

The SP lost 51 on the day but did some notable things in so doing. Price did not make a new low on the move nor did price make a new low close. This could be viewed as a retest or a wash out. Also, the overall pattern has completed a trend termination formation.

Naz lost 70 on the day and recorded an inside day. The resolution of the inside pattern should be explosive.

The multi sector daily chart shows weakness in the banks and strength in the gold miners.

The NYSE Trin closed the day over 5 which elevated the 10-day Trin to 2.20 which is screaming oversold and loaded with potential upside energy.

The Dow/gold ratio broke below 6 for the first time of the bear market.

The XAU was top gun and the only sector up on the day.

SOX was down less than half as much as the SP and the Naz showing relative strength.

The OSX also slightly outperformed the market.

The BTK made a new low close in the move but like many of the major indexes has a trend termination formation in place.

The BKX was the last laggard, making a new low on the move.

Oil was relatively strong:

Gold made a new high touching 1800 into over bought territory in the Gann box.

The SP lost 6 handles after a large gap up to close right at the 200dma. A loss of this area would likely kick in some institutional selling. Note on the chart that price was lower in June but held above the (then lower) 200dma.

Naz was lower by 10 handles but is above both the 50 and 200dmas.

The 10-day Trin is neutral around the 1.00 baseline.

The put/call ratio is slightly elevated but below a climatic spike reading.

The NYSE cumulative A/D line is holding above key support. Keep in mind that this is a leading indicator.

The XAU was top gun on the day and was the only positive major sector.

The SOX was relatively strong vs. both the Naz and the SP.

The BKX remains trapped in the down channel. There are no new technical features, price did not make a new low close on the move.

The OSX still has positive construction. Look to this sector for long ideas if the market pivots higher this week.

The transports closed below the 200dma for the first time this year. If the market is going to make a legitimate move higher, participation from this sector is important.

The BTK was last laggard. Very key support is at the 1320 level where the 200dma and 2010 highs converge.

Gold is holding near the 8/8 Gann level:

Oil settled right at the 200dma. If the May lows are considered a right shoulder and the June lows are a head, the futures could be tracing out a reverse head and shoulder formation.

The SP lost 27 handles, bearishly closing lower than both the close 7 and 11 days ago. This often implies that there is sufficient downward pressure to follow through and not need a measuring day. The tape is currently news driven by earrings and compounded from the news or no news coming out of Washington and could confound the 7/11 signal.

The Naz lost 66 closing on the low of the day. Since price was rejected at he +2/8 level a pullback to the 6/8 level should be support.

The put/call ratio closed slightly elevated, but not climatically so, at 1.05.

The 10-day Trin neutral at 1.06.

The CMR consumer durables made a new low closed below the Q2 lows and also below the 200dma. This is not good news since it was the top sector on the day and is usually a hiding place in a weak tape.

The BKX remains trapped in the down channel.

The OSX remains constructive holding above the 50 and 200dmas.

The XAU was a source of funds and underperformed the broad market. See comments on gold below.

The BTK took a very big hit losing 3.5 % on the day and also leaving the recent trading range (read key support) behind. Next support is at 1320 where the 2010 highs converge with the 200dma.

The SOX was the last laggard on the day off 3.7%. The pattern did however hold above the midpoint of the regression channel which may prove important. Wednesday was 11 days down on the daily.

Gold recorded a new high on the move but closed lower on the day. Price is being repelled by the key 8/8 Gann level.

Oil was lower on the day, closing below the 4/8 level which is currently the new Sheriff in town.

The SP gapped sharply lower and never recovered, losing 23 handles on the day. Intraday price used the 4/8 Gann level and 50dma for support. The MACD is far from a cross over but the CCI is overbought. A settlement below the 50 and the 4/8 will possibly put in place a failing retest of the high.

Naz lost 42 on the day after recording a new high late last week. Note that the Naz is relatively strong vs. the SP, price is well above the 4/8 level, the 50dma and even the 10ema. Tuesday, the FOMC will release the minutes from the prior meeting which should shed some light on the prospects of any further quantative stimulus and could be a key catalyst.

The banks continue to be the laggard on the multi sector daily chart;

The NYSE weekly cumulative advance/decline line was lower on Friday even though the market was higher on settlement. This is a very, very concerning divergence and should be monitored very closely. If the A/D line falters regardless of what the short term equity prices are doing they are ultimately headed lower. Please read the prior sentence again.

The Trin closed at 5.14 which was elevated enough to record an oversold reading of 1.358 for the 10-day Trin.

The Naz is leading the SP which is a bullish condition:

The OSX still has relative strength vs. crude futures which is bullish for oil:

The SOX is still grossly underperforming the NDX, a classic bearish divergence.

The XAU continues to, well, “suck eggs” vs. the underlying commodity. This is a very wide disconnect. Note that even with the strength of gold futures on Monday, exceeding the May and June highs the XAU did not.

The SOX was lower by 7 on the day, settling below the 200dma.

The BTK was weaker then both the Naz and the SP;

The OSX closed right at the 50dma;

The BKX was the weakest sector on the day, rejected by the upper boundary of the trend channel.

Oil:

Gold settled at the second highest level of the year.

The market did very little, both consolidating last week’s huge gain and marking time before the Friday NFP number. Nothing new technically besides holding and not retracing last week’s explosion.

Naz was slightly stronger than the SP gaining 3 handles, settling right at the 8/8 level.

Multi sector daily chart:

The 10-day Trin remains neutral, neither overbought nor oversold.

The TRAN closed right at the previous (all time) high. Be sure to overweight this sector for long ideas once it breaks out.

The XAU continues its bounce towards the 50% fib.

The XAL outperformed the broad market, a break above 43.50 puts 46.50 in play off the “W” bottoming formation.

BTK blah…….

The OSX is most likely gathering energy to push above the static trend line.

The BKX is still trapped within the current downtrend.

The SOX like the BTK is still trapped within the downtrend. Note that a breakout of the channel will also break above the 50dma and could have a good deal of power.

Oil was little changed after yesterday’s breakout.

Gold is moving into key overhead:

The SP is making good on improving technicals. On light volume, more on that later, the futures gained 18 on the day marking the best close in weeks. Many of the financial commentators will dismiss today’s rally as unimpressive because of the low volume but be prepared for more of the same. There is an unusually large amount of institutional cash on the sideline. This is the perfect environment for a low volume summer walk up of stock prices. As long as the technicals remain positive and the trend bias is up, look to trade the long side of the market regardless of the volume. We’ll all have a chuckle in August if the “feeble, lackluster and uninspiring” volume carries price back to 1350 and we’ve been long the whole way even as the financial commentators continue to dismiss the move as “unsustainable”.

Naz added 35 on the day which was a slight underperformance to what is should have done. This is really the only technical compromise from the markets today. The static trend line and 50dma are the trade-to-target.

Multi sector daily chart:

The OSX was top gun on the day, outperforming all other major sectors. If the market gets in gear for a summer rally, this sector should break the DTL. Set an alarm.

The XAU was stronger than the broad market with an implied first bounce target of 200.

Be sure to overweight the Transports for the next few weeks. They are typically the best late cycle performer. Truckers, airlines and shippers should all be evaluated for long trades. Note that the TRAN is already back above the 50dma

The SOX is still a problem. They are still well below the midpoint of trade for the month and underperformed both the broad market and Naz today. There will be a big pop soon but follow through will be bumpy and uneven. The pigs will get their lipstick but continue to underweight.

The XAL underperformed on the day and is now 9 days up. When this DTL gets taken out they should begin to fly.

The BKX was last laggard on the day but should soon pivot and make good on the 13 exhaustion signal. 200dma by Labor Day? The BKX is the big early cycle sector which means that they are typically not top performers late in the cycle where we currently reside. This means that if the banks can turn positive it is a confirmation signal that the market has made a real turn and that even the less desirable sectors are attracting money. These confirming signals define the “rising tide” of true bias.

Oil bounced back to the 200dma.

Gold has broken trend and is a source of funds.

The SP again tested and held the 200dma. The futures added 12 on the day but have yet to clear the 3 day range that they have now been trapped within. Keep in mind that end of quarter window dressing begins midweek.

On a relative basis the Naz was much stronger than the broad market. Monday, the Naz gained 41, closing at a multi day high. Note that the oscillators have turned positive. A settlement above the 4/8 level should kick in upward momentum.

Multi sector daily chart:

The 10-day Trin is neutral:

The put/call ratio recorded a near extreme reading:

The weekly NYSE cumulative advance/decline line remains very constructive and long term bullish for traders.

The BKX was top gun, note the Seeker buy signal that registered late last week.

The SOX was weaker than both the broad market and the Naz.

The OSX recouped steep midday losses and settled right at the 200dma.

The XAU was the last laggard on the day and a source of funds.

Oil still has a downward bias:

Gold is gaming 1500 level. Note that this is the 4/8 level.

The SP posted a very sloppy day on the chart, losing 8 on the day and closing at the dead low. Late in the day, after Fed chairman Bernake signaled that there will be no QE3, bids evaporated and enthusiasm left town. The technicals remain unchanged though the bulls didn’t put up a fight to register a measuring day to build on. Instead the chart now has a compromising midrange king and queen pattern on the chart which implies a break under Tuesday’s low would turn the pattern back to short-term negative (a loss of the 10ema). Keep in mind that the MACD still has a positive cross and the CCI has yet to get overbought.

On a relative basis, the Naz was considerably stronger than the SP. Compared to the SP the Naz put in a measuring day where price held above the midpoint of the prior day’s range. Both the Naz and the SP settled right at the 10ema. 2250 is the next hurdle for the bulls.

Multi sector daily chart:

The XAU was top gun taking a shot at the 4/8 level. There is still a considerable amount of upside room for more of a bounce before overhead begins with the declining 50dma.

The OSX was green and recorded the second day up in the Seeker sell setup. Price remains below the active DTL.

The BTK was about unchanged.

The SOX continues the bearishly underperform the Naz. Price remains below the 10ema.

The BKX was almost twice as weak as the broad market but held above Tuesday’s low.

Oil is pinched between the 10 and 200 period moving averages. Once this is resolved it should move quickly.

Gold pushed above the DTL but did not record a new high on the move.

The SP gained 14 on the day. Price is now short-term positive since it settled above the 10emaf or the first time this month. Also a price flip was recorded since the close was above the close 4 days ago. Note that the MACD has crossed over but remains well below the zero line where real momentum can develop.

Naz was higher by 44 settling above the 200 and 10 period moving averages. The next important hurdle for the bulls to jump is the 4/8 Gann level. A MACD cross is on deck.

The 10-day Trin has dropped fast from oversold (>1.35) to near overbought (<0.85) already.

Multi sector daily chart:

The XAU was top gun on the day, gaining 3%. The chart has recorded a price fip.

The SOX was stronger than both the SP and the Naz but remains below the 200 and 10 day ma’s.

The CYC index was highlighted in last nights report noting the good relative strength. Tuesday, the leading index was a top performer and recorded a bullish MACD cross.

The OSX closed right at the 10ema and now needs to break above the active DTL.

The BTK underperformed Naz.

The BKX traded in-line with the performance of the broad market. The Seeker study did record a sell setup price flip.

Oil was held under $95 even with the strong performance of overall equities.

Gold closed right at the DTL:

The SP made good off the completed Seeker buy setup and also the 1200 individual stocks that were 9 days down by reversing higher by 18 handles. Note that Tuesday’s candle was a price flip and also interacted with the 10ema.Watch the CCI for a trend break which will lead a possible MACD buy signal that would come later.

Naz was higher by 27 but did not record a price flip. A close back above the 10ema or a price flip would turn the chart back to short-term positive. Note the CCI on the lower portion of the chart.

Multi sector daily chart:

The OSX was top gun on the day, +2.5%. Price challenged but did not reclaim the 10ema. Key support is just below at the 200dma.

The SOX outperformed the broad market and Naz but needs to reclaim some key areas, the 0/8, the 200dma and the 10ema before a change in trend can be called.

The XAU recorded a price flip and now needs to follow through.

The BTK continues to struggle and was weaker than the overall market. The notable failure was the inability to exceed the prior day’s high. Over weight this sector for short opportunities if the tape turns lower again.

The BKX attempted higher prices mid-day but was met with selling. A completed Seeker buy countdown would help but is currently only 11 out of 13 required days down.

Oil was higher on the day, back near the $100 midpoint of the recent range.

Gold posted an unimpressive inside day.

The SP gapped higher and finished the session with a slim gain of 2 handles. The Seeker buy setup has now recorded 9 bars down and is staging just above the critical 200dma. In sync with the broad market there are a whopping 1198 stocks 9 days down and 852 “on deck” 8 days down. This is a big opportunity for the bulls to turn the tape back in the favor. No bounce or change in trend would be a very notable failure.

The Naz futures are weaker on a relative basis and already interacting with the 200dma.

The NYSE cumulative A/D line took a substantial hit last week but is not bearishly leading price. Rather it is following price which usually leads to a smaller rather than large correction.

The BKX was one of the strongest sectors on the day, up 1%. Note that the BKX breaking above the 10ema would also break price back above the 6/6/11 range expansion candle and turn the chart short-term positive. The chart is still two candles away from a Seeker buy signal.

The BTK closed below Friday’s low and has support in the area of the active static trend line and the 4/8 Gann level.

The SOX moved farther below the 200dma and deeper into the oversold support levels in the Gann box. Next support is 390.62. Note that the seeker is 8 days down and will recycle the buy countdown if candle 9 of the setup phase prints.

The XAU made a new YTD low and in so doing recorded day 9 of the Seeker buy setup.

The OSX broke down below the recent range and was the last laggard on the day losing 2%. There are 2 key support areas close by, the 0/8 Gann level (used today) and the 200dma.

Oil was very weak but remains in the same range between $95-105.

Gold is in jeopardy of breaking a key DTL. A break below the DTL and the 50dma will turn the bias down.

The SP was lower by 8 on the day, expanding the selloffs decline. Price is now 6 days down and getting closer to critical support at the 0/8 level and 200dma. There are also two other cortical support areas to consider. The MOB study projects support off the April low right at Wednesday’s settlement and the second line of defense off the March low projects support at the 1220 level.

Naz lost 25 on the day and was much weaker than the broad market. Price settled below the 4/8 Gann level and April low. Key support lies at the 200dma which lines up with the MOB off the 4/18/11 low.

Multi sector daily chart:

The put/call settled at a marginal new high:

The OSX was top gun, helped by higher oil prices. Price settled right at the lower edge of the trading range. A beak below and follow through would be very bearish for the broad market.

The BKX continues to leak and is now 11 days down.

The BTK used the 50dma as support but is close to a beakdown. Set an alarm for a move under 1436.50 which should kick in some high probability shorts in the sector.

The SOX recorded its lowest close of the year. This is a very bearish development. Expect some gaming of the 200dma after which there will be good short setups.

The XAU also recorded a new low close for the year. Keep in mind that the divergence between the XAU and the gold futures is bearish for gold.

Below, note the huge divergence between gold (green) and the XAU (magenta).

Oil:

Gold:

gold

The SP closed about flat on the day on low volume. Price attempted a push higher but left the gap open from Monday. This is the second settlement below the static trend line and the 50dma.

Naz was much weaker than the broad market losing 14 on the day. Tuesday’s price action undercut Monday’s range and close. Key support remains at the static trend line at 2280, next support is the 4/8 Gann level at 2281. Note that the CCI has recorded the lowest reading of the year and is loaded with oversold energy.

Multi sector daily chart:

The sometimes defensive XAU was the top performing sector on the day, +2.5%.

The OSX was higher on the day but remains range bound.

The BKX broke to new lows but closed mostly unchanged. The last line of defense for the bulls is the 38% fib at 48.75.

The BTK is very close to breaking down below the 6/8 level that is the current low of the recent range. Note that the MACD is already moving lower and will gather momentum if 1437.50 is lost marking a qualified lower high.

The SOX was weaker than both the broad market and the Naz. The 2010 December highs are the last line of defense.

Oil:

Gold:

Thursday, before option expiration, the SP added 3 handles to the rebound. Note that price closed right at the February high. One key feature of the day was that a price flip was recorded and the chart now has the first day of a sell setup in place.

The Naz is still being contained under the 8/8 level. The futures settled higher by 7 on the day but need to punch through and settle above 2375 level.

Multi sector daily chart:

The BKX was little changed and still below the DTL.

The XAU is still below all the important moving averages and consolidating for a move.

The OSX is still trapped in its consolidation range.

The BTK touched the 8/8 level and was rejected. This chart looks vulnerable to corrective activity. Note that the MACD is already rolling over.

The SOX was the last laggard on the day which is always cause for concern.

Oil traded mostly inside yesterdays range.

Gold posted an inside day and continues to hold above the static trend line.

The SP pivoted of support at the 50dma to rally 13 handles on expiration Wednesday. The next challenge is the February high at 1343. While today was a very strong session, it was not strong enough to record a price flip.

Naz was higher by 24 but came up short of reclaiming the 8/8 level and also the 10ema. Note that price remains above the active DTL (red).

Multi sector daily chart:

The OSX was top gun on the day but is still trapped in the recent range. A close over 270 is needed to tilt the balance back in favor of the bulls. The next level for the bears on the downside is the 8/8 Gann level at 250.

The SOX was the top performing the Naz sector. There is considerable overhead until price clears 450.

The BTK remains under the 1500 8/8 level which is resistance and could be the top of an immature consolidation range.

The BKX was higher on the day but didn’t have much range expansion after yesterday’s reversal candle. Keep a close eye on the active DTL. A close over this could kick in some upside momentum.

The defensive consumer staples index (CMR) closed at a new high on the move. Price has room before hitting resistance at 8/8.

Oil was higher by $3.

Gold was higher but settled below 1500. Keep an eye on the DTL.

The SP closed unchanged after finding support at the 50dma. Note that Tuesday’s close is also the static trend line. This is a very key area of support.

Naz was slightly higher on the day closing near the 50dma. The gap from early April is still open.

Multi sector daily chart:

The 10-day Trin closed at 1.21, still below the 1.35 oversold threshold.

The cumulative NYSE A/D line took a hit which is consistent with the price action. This chart needs to be monitored to see if price bounces in the SP that the A/D line follows. A divergence on the bounce would be a strong indication that there is a more price correction in the cards.

The SOX continues to underperform the NDX which is a very negative intermarket divergence and has bearish implications.

The bearish divergence between the XAU and gold futures has grown wide enough for some relief.

The BKX is doing some good work around the 200dma and closed top gun on the day.

The XAU is amazingly still finding support at the static trend line from October 2010! Look for a move back to the 200dma after price settles above the recent range.

The BTK was little changed on the day.

The OSX posted a new low close on the move but is losing downside momentum. Note how the CCI is now trying to curl up.

The SOX dropped and found support at the DTL fall back. This is never a welcome development for bulls.

Oil settled right at the prior low close on the move.

Gold lost 4 on the day, still holding above the 50dma and static trend line.

The SP lost 15 on the day and settled below the 10ema. The next key area of support is the static trend line at 1325.

Naz lost 16 on the day, using the 8/8 Gann level as support intraday. Be sure to set an alarm for a break under 1374 which would be a fresh 3 day low. The price action remains lateral and will be key pivot when price leaves the range.

The put/call ratio recovered but extremely low close recorded yesterday led the Tradesight Analysts to get aggressively short on Wednesday.

Multi sector daily chart shows the money rushing out of the gold stocks.

The SOX was the top performing Naz sector which isn’t saying much since it was down 1%. Price is still using the 50dma for support.

The BTK closed almost exactly at yesterday’s low but above the 10ema. The 8/8 level remains the active resistance level.

The BKX is still contained below the 50dma and active DTL. The April lows and 200dma are the next area of support.

The OSX was a huge loser on the session, down a full 3%. Key support is just under 260 which is the low of the move to date. Retracement fibs have been added which highlights the importance of the 250 area if price continues to break.

The XAU got completely destroyed, losing 4% and almost making a new low close for the year. Set an alarm for a break under 194.60 which is the YTD low. Note that price is now in the Gann oversold area and should have strong support at -2/8.

On the strength of the $US gold got knocked back down to 1500.

Oil posted another limit down day, settling just above the 62% fib.

The SP is maintaining trade above the February high. Today the futures were higher by 11 which recorded a price flip (green labeled 1 over the candle).

Naz was higher by 22 settling right at the high close to date. One could argue that the February to present price action is tracing out a cup and handle.

Multi sector daily chart continues to show the excellent strength in the biotech issues.

The 10-day Trin remains neutral, neither over bought, nor oversold.

The put/call ratio took a very notable dive which is almost always leads to equity price weakness in the next session or two.

The Dow Transports closed at a new high on the move, finishing top gun on the day.

The OSX was stronger than the broad market, closing back above the March lows.

The BKX was strong but remains trapped below the 50dma and active DTL.

The SOX posted a narrow range day and ultimately bearishly underperformed the Naz.

The BTK made a new high on the move, closing right at the 8/8 Gann level.

The XAU remains weak, gaming the 200dma–nothing new technically until it reclaims the 10ema or loses the 200dma.

Oil continues its bounce and should find first resistance around 106 at the moving averages.

Gold was higher on the day, extending the bounce.

The SP posted a small range inside day, closing higher by 8 on the day. Price settled below the February high so the burden of proof remains on the bulls.

Naz also posted an inside day, settling higher by 13 on the day. Note that the day’s close was above the 8/8 Gann level.

Multi sector daily chart:

The weekly cumulative A/D line continues to register strong readings which are a very strong foundation for favoring buying pullbacks vs. selling rallies.

The OSX was the top gun, though the day’s range was contained by Friday’s bounderies.

The XAU was also relatively strong but posted an inside day. Price closed back above the 200dma.

The BTK settled at a new high on the move. Note the key 8/8 Gann level just overhead at 1500.

The SOX was lower on the day and contuse to bearishly lag the Naz.

The BKX was weak vs. the broad market and is still using the 0/8 level for support.

Oil bounced strongly off the March lows but is still in correction mode until the MACD turns positive again.

Gold settled back above 1500 and continues to bounce off the static trend line. The intermediate trend is positive until the 50dma is violated.

The SP saw more selling closing right at the February high and losing 9 on the day. Price has flipped where today’s close is lower than the close 4 days ago and printed day one of the Seeker buy setup. The February high and 1337 April consolidation level are the important near-term levels.

Naz was lower by 5 handles on the day but was relatively strong vs. the SP all session. This is a very important feature today and one of the few positive technical aspects.

Multi sector daily chart:

The SOX was the strongest major sector on the day. The index fought all day to keep the losses minimal and was able to close above the 50dma. Relative strength in the SOX and also relative strength in the Naz vs. SP will go a long way to minimize the losses in a broad market correction.

The XAU tested and found support at the 200dma. The 200 is a monster level with the current design of the chart. Be sure to set an alarm for a break under 204.30.

The BTK traded inline with the broad market, holding above the 10ema.

The financials were strong in the morning but faded quickly. Price remains below the declining 50dma and DTL.

The OSX settled just below the March low which is a real negative on the chart. The chart is short-term oversold but breaking down. Notice the bearish “M” top that is now in place.

Oil broke the near-term DTL which puts the static trend line and rising 50dma in play.

Gold broke to a new low on the week but held above 1500. Expect that with the media and gold bugs swarming, the 1.5k level is going to be big. But note on the chart, that even if gold goes below 1500, it will likely still be above the active DTL. Considering the weak intermarket relationship relative to the gold miners, gold rallies should be sold and wait for the DTL to look long.

The SP lost 6 on the day, following through on yesterdays range high distribution candle. Note that the Seeker sell setup completed which recycled the Seeker exhaustion sell countdown. Price held above the 10ema and February high. This is now a key area of support.

Naz was lower on the day but managed to close near the midpoint of the session which erases any momentum that the pattern was building. A close under the 10ema and 8/8 Gann level is the point where downside momentum will begin.

Multi sector daily chart:

Interestingly the put/call ratio tanked which is a sign of complacency.

The 10-day Trin remains neutral which means there is gas in the tank for a move in either direction.

The BKX was the only major sector that was green. Two key areas to watch: The active DTL and the 50dma (green).

The BTK was lower on the day but essentially inside Tuesday’s real body, so nothing new technically.

The SOX broke down to settle right at the 50dma. A second, minor DTL has been added to the chart.

The XAU broke decisively below the 50dma, note how very subtly, the patter is tightening up. There are both high highs and lower lows present on the chart.

The OSX broke very hard and is now short-term oversold. The March lows are key support and also a major breakdown level.

Oil was lower on the day, settling right at the rising DTL. 106.50 is the next support level if the DTL doesn’t hold.

Gold futures got clocked and are starting to break. Look for a close under the 10ema for the first confirmation of a change in trend.

The SP broke to new high ground on the day adding 10 handles to the move. Price settled above the prior high which now puts the 8/8 level in play up to 1375. The bar count remains favorable at only 9 days up in the exhaustion countdown.

Naz added 24 on the day settling at a very important level. The close was right at the confluence of the 100% fib extension, the Seeker risk level (magenta) and the +1/8 Gann level. This is a rare instance where the Gann, Fibonacci and DeMark practitioners all have a meaningful level to trade.

The late cycle BTK index has assumed leadership of the multi sector daily chart:

The put/call ratio has yet to register a climatic reading on this move:

The 10-day Trin still has plenty of gas in the tank before recording an over bought reading <0.85.

The BTK exploded higher getting very close to the 8/8 target area at 1500.

The XAU has a strong day but is still bearishly lagging the underlying gold futures.

The BKX finally showed signs of life. Note the DTL that has been added to the chart.

The Dow Transports broke out to a new high on the move:

The Dow theorists were pleased to see both the INDU and TRAN both register new 52 week highs but note that the Dow 30 Industrials are close to the +2/8 over bought level.

The SOX continues to bearishly lag the Naz. Even with the Naz recording new 52 week highs, the SOX was barely able to close green on the day. This divergence will be a rally killer if it persists.

The OSX was the last laggard on the day. If the weakness persists in the OSX and the broad market holds firm traders should focus on the late cycle transportation names.

Oil is trading right at the 100% fib extension and also the 8/8 Gann level.

Gold broke out to new highs and is now 8 days up and in overbought territory in the Gann box.

The SP posted a very narrow range measuring day with very little change on the day. Volume was down ahead of the 2 day FOMC meeting.

The price action in the Naz was very similar to the SP. Price closed very near the 8/8 Gann level with little net change on the day. Note that narrow range days build up energy for a range expansion move when a catalyst is introduced.

The 10-day Trin is actually closer to oversold than overbought at 1.17.

The weekly cumulative A/D line is technically sound after recording a new high close on the move. This is exactly what intermarket analysts would expect to see before the broad market breaks out to the upside.

Multi sector daily chart:

The SOX posted a narrow range day but was the top Naz sector. A close over the April highs opens the door to the static trend line at 460.

The BKX traded inline with the broad market so nothing new technically.

The BTK lost 5 handles on the day, still below the +2/8 level that would frame shift the daily.

The OSX lost 1% on the day and was much weaker than the market. The 10 and 50dmas have converged just below the recent lows which make for key support.

The XAU was the last laggard losing 2.5% on the day. The XAUs refusal to produce a new high bodes poorly for gold futures holding above 1500. For gold futures to continue higher the XAU needs to make a new high.

Oil retested the 100% fib extension but has yet to exceed it. This is a very key area of resistance and also new beak point.

Gold posted a range high distribution day, settling below the open.

The SP gained 7 on the day where the pattern recorded the 8th day down. Note the confluence of interest at the 1312.50 area where the 10 and 50dmas lie and where the 8/8 Gann level is set. Wow, is this an important resistance level or pivot point in the market. There is one other key feature worth talking about in the current Seeker setup. The SPs are now 8 days down but the 8 candle is not lower than both the 6 and 7 labeled candles in the count so unless the 9 is recorded below both 6 and 7, more testing of the 1300 level is likely.

Naz was higher by 21 on the day and was slightly stronger than the SP because price closed above the 10eam. Note that the Seeker has recorded an upside price flip.

Multi sector daily chart:

The SOX continues to bearishly lag the NDX100:

The spread between the gold futures and gold continues to bearishly widen:

The XAU was the best performing major index on the day. The 50dma so far had been a critical pivot. The next target is the 76% fib.

The OSX settled right between two key MAs and has possibly recorded a higher low. Note that the Seeker exhaustion signal is still active.

The SOX continues to lag, but has held the active static trend line. The Intel earnings Tuesday night should set the tone for Wednesday’s action.

The BKX continues to struggle, the next support is the 200dma.

The BTK biotech index is tired but holding above the 10ema.

Oil:

Gold swept but closed below the 8/8 level at 1500:

The SP treaded water, closing unchanged, and showing no sign of option unraveling. The 1317 overhead gap was filled, but otherwise there were no new technical features. Higher prices traded, but at the end of the day the chart recorded another distribution day.

Naz was higher by a full 15 handles which made the Naz relatively strong vs. the SP. Since Naz tends to lead the SP, this difference, or “bifurcation” as it is known, can be a tell that a change in bias is forthcoming. One day does not make a trend but if this follows through and the condition persists, then the long side will be more profitable.

Multi sector daily chart shows the poor performance of the financials:

The BTK was top gun, closing at a new high and just shy of the measured move target. Keep looking to this sector for long continuation/breakout trades.

The OSX posted an inside day, using the static trend line as support. Be sure to alarm the high/low form Tuesday which will breakout the mini-pattern.

The SOX was slightly higher on the day but greatly underperformed the Naz. Wednesday’s candle was inside the prior day.

The XAU was weaker than the broad market and is closing in on key support at the 50% fib retracement. A close and follow through below the 50% line would validate the double top on the chart.

Following JPM’s earnings, the BKX was the last laggard on the day. The Seeker buy setup is only 2 days down and within striking distance of the static trend line. A break of the STL this early in the setup phase would be very bearish.

Oil was higher by about a dollar, perhaps working off the velocity and large range of the previous candles. A break below Wednesday’s low is an excellent short opportunity.

Gold was slightly higher on the day, trading inside yesterday’s range. Key support at 1440.

The SP followed through to the downside losing 11 handles on the day. Price has settled below the rising 50dma and has a Seeker buy setup in progress, currently 3 days down. Tomorrow is the Wednesday before options expiration so be on guard for stocks moving towards pegs.

Naz lost 15 on the day and in so doing, pushed the CCI below the zero line implying acceleration of downward momentum. The one bright point is that price closed at the midpoint of the day’s trading range.

The multi sector daily chart looks similar to yesterdays with the BTK exerting relative strength.

Interestingly, the NYSE 10-day Trin dropped and broke below the zero line. This should be read that there is plenty of selling fuel if the bears get proactive.

The BKX was top gun, settling unchanged after ranging both higher and lower intraday. Note that the price action was a price flip and the first day down in a Seeker buy setup.

The BTK did very little but was relatively strong vs. both the ES and NQ.

The XAU was again a source of funds. As discussed in last night’s report, the intermarket technicals are bearish for gold.

The SOX broke decisively below the near-term DTL and now must use the 2010 highs at 420 for support.

The OSX was the last laggard on the day losing 2.6%. Price closed right at the static trend line. Note that the CCI has move aggressively lower and is near the first oversold threshold around -100.

Oil followed through on the outside day down. Retracement fibs have been added to the chart which indicates first support at 103.39.

Gold was lower by $14 and could easily move much lower if the XAU continues to weaken.

The SP tested the waters above the recent range but was rejected and settled below the open but up 2 handles on the day. The same technical condition persists in that only a close outside of the recent range will define a directional bias.

Naz was also higher on the day by 2 handles. Price remains just above the key 10 and 50dmas.

Multi sector daily chart:

The 10-day Trin broke below the 1.00 baseline, neither overbought nor oversold.

The SOX was top gun, closing at a new high on the move and challenging the 50dma. Note that today’s candle was a price flip and the setup phase now stands at one.

The BKX posted a similar day, breaking above the 50dma.

The BKX closed at a new high on the move and is still well shy of the 100% measured move target.

The XAU tried for higher prices but didn’t have much to show at the close. This was the dreaded measuring day that we were prepared for following yesterday’s range expansion candle. Thursday is a higher probability upside day, especially if price gaps lower over night.

The OSX was the last laggard, decisively breaking below the recent tight trading range. The Seeker exhaustion signal is still active.

Oil:

Gold:

The SP remains trapped in the recent range. Intraday, price swept the prior high but settled 2 handles lower on the day. Noting decisive can be determined until price exits the mini-range on a closing basis.

Naz was weaker by 17 on the day, settling right on the 10 and 50dmas. Note the relative weakness of the CCI on this bounce/retest. The relative weakness in the Naz vs. the SP is a problem for bull case in the market short term.

Multi sector daily chart shows the gold stocks coming on very strongly.

The put/call ratio took a decisive dive, implying extreme complacency.

Naz continues to underperform the SP which is always concerning for the bulls. Naz is illustrated in the chart below in magenta.

The XAU exploded through the static trend line to tag the 8/8 level. The gold shares were by far the strongest sector on the day. Such a strong impulse might need a measuring day before following through.

The SOX was the top gun of the “regular” sectors. Fueled by a takeover in the index, the semiconductors were higher but settled at the midpoint of the day.

The BTK was higher on the day but couldn’t break free from the gravity of the 8/8 Gann level.

The OSX continues it’s tight trading range, still beneath the Seeker exhaustion risk level.

The BKX posted another indecisive candle on the chart, still below the down sloping 50dma.

Gold broke out to a new all-time high, the +2/8 level key resistance.

Oil was slightly lower on the day, the Seeker exhaustion signal is still active.

The SP closed at a new bounce high as Q1 comes to a close adding 7 on the day. Price tested but did not exceed +1/8. Note that the pattern is now 8 days up.

Naz gapped higher, filled the gap, and then settled right at the open. Like the SP, the Naz is 8 days up. There are a large number of stocks in the same rhythm as the SP and the Naz with a very notable 1477 stocks 8 days up.

The multi sector daily chart reinforces the comments form the last report, keep a eye on the relative strength developing in the BTK.

The BTK was top dog by a wide margin exploding higher by 3%, keep an eye on the next fib target.

The XAU outperformed the broad market by 100bp, price remains above all of the major moving averages.

The BKX is still sleeping and traded in-line with the broad market.

The SOX was relatively weak, testing and rejected by the 50dma.

The OSX was the last laggard but did record a new intraday high on the move. The 100% fib extension is a very key area. Even though today was a new high, price closed below the open making a distribution day. Range high distribution days are where bull moves often begin corrections.

Oil:

Gold:

The weekly cumulative advance/decline line continues to look very healthy with implys that pull backs should be short lived.

The SP answered an outside day down with an outside day up gaining 14. The volume was light but will likely pick up as the rest of the week progresses. Wednesday, the ADP employment number is out before the bell then Thursday jobless claims are released and finally the monthly non-farm payroll number should force some volume into the tape by Friday.

Naz was unable to exceed yesterday’s high but did close at a 2 week high. Note that price in now back above both the 200 and 50dmas.

The multi sector daily chart shows the BTK coming on strong as is very common at this point of the advance.

The OSX was top gun breaking out to a new high and closing in on the 100% Fibonacci extension.

The BTK is close to breaking out of the consolidation range. Make sure to overweight this sector and look for long plays if the index closes above 1334.

The SOX was higher by 1%, staging just under the recent 3 day high.

The BKX eked out a small gain and continues to lag the broad market.

The broker dealer index was the last laggard on the day and remains well below the 50dma.

Oil recovered early losses and closed higher on the day;

Gold was a source of funds but left a tail:

The SP expanded the range to the downside Monday, losing 10 on the day. Price has closed below the 10ema and 50dma’s. The last confirmation for the bears will be a loss of the zero line of the MACD. Note that while the action was negative, price settled above the open which qualifies as a camouflage buy signal. These short term signals were seen in the SP, NQ and YM futures. This implies that price will exceed the prior days high before the low is taken out. This is something help guide through the volatility and expiration week.

Naz remains boxed up within the recent three day range, so nothing new technically until this range is resolved on a closing basis.

Multi sector daily chart:

The 10-day Trin remains below the 1.35 oversold threshold which means that there is more downside potential until this level is crossed.

The OSX was top gun on the day, posted an inside day. The rising 50dma remains critical support.

The SOX was little changed after an attempt to fill the overhead gap. The bias remains down until the 10ema is reclaimed. Note the key support at the 420 level.

The XAU was down less than the broad market. There will likely be some volatile price action as the pattern pinches between the 50 and 200dmas.

The BTK remains boxed up and often is a place for long money to hide late in market move.

The BKX was lower by 1% and has a downward bias.

Oil spent a good deal of time below the $100 level early in the day, but ultimately settled above it leaving two very long tails (read buying) below the century mark.

Gold settled just below the 1431 breakout level.

The SP posted an inside day. This kept yesterday’s candle from following through but also didn’t resolve the pattern to the upside. A decisive break is needed to force the players from the larger time frame to make a move.

Naz also posted an inside day but was relatively weaker than the SP. Again, a break and follow through is need to resolve the short term rising wedge pattern.

The 10-day Trin remains below the 1.35 oversold threshold:

The put/call ratio still has not recorded an high climatic reading where a large number of traders buy insurance.

The BKX was the top major sector, set an alarm and evaluate a test of the 50dma for a short opportunity.

The SOX was hit hard on Monday and did very little to bounce Tuesday. Set an alarm for a break under Monday’s low for shorts in the semiconductor index. Keep in mind that this relative weakness is bearish for the Naz and broad market.

The OSX saw some net selling. The pattern still hasn’t completed a Seeker 13 exhaustion, but only needs 2 more candles to do so. Price continues to hold above the 10ema.

The XAU was the last laggard on the day. A close below the near term DTL will put the 2011 lows in play.

Oil was unable to push higher and the CCI implies that it is losing momentum.

Gold was slightly lower on the day. Note that the Seeker exhaustion signal remains active.

The SP lost 11 handles on the day, settling below the key DTL. The trend will not turn negative until there is a day of follow through and even better a break under the recent range.

The hourly chart of the SP futures has price just barely hanging onto the falling wedge lower boundary. The upper window at the top of the pattern is key resistance going forward.

Naz lost 35 on the day, touching, but not breaking below the 50dma. A close below the rising regression channel would be the first confirmation of a trend change. Note that so far the bulls have been able to keep the MACD above the zero line. This is another key indicator to watch for confirmation of a CIT.

Multi sector daily chart:

The SOX may be developing a bearish divergence from the NDX 100. Since the SOX is often a leading index, continued downside in the SOX will likely take the NDX lower with it.

The BKX was the best performing major index on the day, only down ¾%. Target the 50% fib to cover shorts or reversal opportunity.

Leader, OSX posted an outside day down. A close under the 10ema would be a very negative development.

The XAU closed right at the 10ema. Even though gold futures were high on the day, the underperformance of the gold stocks is screaming that the high price of gold futures is suspect.

BTK remains range bound:

The SOX was the weakest major sector, lagging the SP and Naz very badly. Price has settled below the DTL for the first time in the move. Watch for a break under the zero line in the MACD for confirmation of a CIT.

Gold:

Oil:

The SP gapped higher, testing the gap window form last week and was sold, sold, sold. At the close, price was at the low of the day actually closing the gap up from Friday. After all was said and done, price shed 25 handles and made the low close of the move off the swing high. The Static trend line form the 2/1/11 gap is the key level. The Seeker has just recorded a price flip and also settled below the near term DTL.

Naz lost 39 and closed the open gap from Friday. For this report the weekly chart of the NQ futures is presented to show the flash crash swing low and the 2007 high (point A). Approximately 2253 is a very critical area. This is the breakout above the 2007 high and recent critical support on pullbacks. If this area is violated the short term trend will be negative. If price continues lower, the next focal point will be the primary DTL (point B) which if violated will turn the chart intermediate negative.

The multi sector daily chart shows the defensive rotation into the XAU.

The 10-day Trin popped but is well short of the 1.35 oversold threshold.

The XAU made good on the 50% fib breakout and tagged the 62% fib. Price is now 3 days up which is often a pause.

The BTK outperformed the market but remains boxed up:

The SOX was lower by 2%, keep a close eye on the MACD zero line.

The OSX posted a range high outside day down. This is very often a lasting high water mark on charts.

The BKX recorded the lowest close of the YEAR. The active static trend line has been violated and the current bar count is only one day down. Keep a close eye on the price action in AIG. The bias has been down and the US Treasury needs to sell billions of shares.

Oil recorded a new high close:

Gold broke out to a new high:

The SP added 6 handles to the advance, making a new high. A measured move target has been added to the chart by applying Fibonacci extensions from the July low to the 1216.50 breakout. 1346 is the first level.

Naz was higher by 10 but settled near the low of the day. The Seeker exhaustion signal is still active and the 100% measured move target is just overhead.

Multi sector daily chart:

The 10-day Trin is getting close to the 0.85 overbought threshold.

The OSX was top gun up more than 2%. Keep in mind that the pattern has the look a completed 4 bar trend termination formation but the first day of the pattern, 3 days ago, was not an up day which technically disqualifies the signal.

The SOX outperformed Naz and closed right at the 62% fib.

The XAU closed at the high of the bounce and is very close to the 50dma target.

The BTK remains boxed up:

The BKX was the last laggard, still in the very tight 3 day range.

Oil completed the minimum 9 days down for a Seeker buy setup.

Gold is back at the 1375 level:

The crude vs. OSX spread remains very wide, stay on guard for a convergence move.

The SP is stuck at a measured move. There has been a lot of talk in the financial medial about the SP500 having about doubled from the intraday swing low at 666. They say that the “psychological level” is proving to be a headwall in the advance. The truth is that the “psychological level” is actually a legitimate level. There is a technique for measuring moves that is known as Absolute Fibs. They are different from relative fibs because the absolute fibs have only one reference point. The swing low or high is identified and then the Fibonacci series is applied as a multiplier. This yields measured move targets. In the weekly chart below, the key levels were the 50% fib 666*1.5=999, then 666*1.618=1077.58 and finally the current level, 666*2.0=1332.

The SP posted a narrow range day, leaving a second doji at range high. Wednesday is 2 days before expiration and could see some improved range.

Naz was flat on the day completing the 9 bar Seeker setup phase.

Multi sector daily chart:

The XAU was top gun, settling at the top of the recent range. The trade-to-target remains the 50dma.

The BKX was lower on the day after on an intraday basis recording a new high on the move.

The BTK was range bound:

The OSX underperformed the broad market even though crude was higher on the day. The advance remains uncorrected since the handle breakout December 1,

The SOX was the last laggard on the day. The Seeker exhaustion signal remains active.

Gold:

Oil recorded new YTD lows and is now 8 days down:

The SP was lower on the day by 3 managing to settle above the open. This is a small win for the bulls that they need to build on.

Naz hit a new intraday high but settled about even on the day. The Seeker exhaustion countdown is now 12 days up.

Multi sector daily chart:

Checking in on the put/call ratio shows that there is nothing extreme happening but note that the downward bias of the chart has reversed to an upward bias.

The 10-day NYSE Trin is below the 1.0 base line but above the 0.85 overbought threshold.

The OSX continues to handily outperform the underlying crude futures which is generally bullish for the oil futures.

The SOX has begun to underperform the broader NDX100. If this condition persists it will be bearish for the NDX.

The XAU continues to underperform the gold futures which is bearish for gold.

The Seeker exhaustion signal is still on deck in the SOX index. Keep a close eye on the setup phase that is in progress. If the setup completes the minimum 9 bar run before the 13th countdown candle prints it will recycle the current exhaustion countdown.

S

The BTK underperformed both Naz and the broad market. Key support is just below at the range low and 50dma (green).

The BKX posted a wide ranging day, keeping the Seeker sell signal alive.

Oil:

Gold:

The SP was higher on the day, adding 6 more points to the rally in progress.

Naz was higher by 17, topping yesterday’s high and closing above it. The pattern is now 11 days up.

Multi sector daily chart:

The 10-day NYSE Trin is neither over bought nor over sold at 1.00.

The XAU was top gun, +2% on the day. Keep an eye on the 50dma for a trade-to-target on the bounce.

The BKX broke and settled above the 76% relative fib.

The BTK was flat on the day, with no new technical features.

The SOX was lower on the day, underperforming Naz. Note that the Seeker 13 exhaustion signal is still on deck but has not been recorded.

Former leader OSX was the last laggard on the day. If this sector breaks, the market will need new leadership.

Oil was lower on the day but found intraday support just above the YTD low.

Gold was higher on the day which puts the 50dma in play.

The SP posted a very narrow range inside day, neither impressed nor disappointed by the ADP Employment Report. The Seeker exhaustion signal is still active.

Naz also posted a very narrow range inside day. Price is still contained below the January highs and the Non-farm Payroll number will likely be the deciding factor. Note how the ranges have expanded (read volatility) which can be a sign that a change in trend may be coming. This is a function of the dominant side, the bulls in this case, losing control and transferring control of the tape to the other camp. The upward advance has been very powerful and should be respected, but recognizing this subtle tell can help traders have more confidence and play the new dominant side sooner when a change in trend is detected. The current increase in range from high to low is only about 3%, however if this persists or the range expands, the bulls will be on notice.

In the chart below is a look at the price action leading up to the top of the NASDAQ tech bubble in 2000/2001. There was a very well organized advance followed by a period wide range trading that covered ~535 points of range in a very sloppy manner. There was a second push higher followed by another range that was even larger than the prior covering ~650 points of range. These disorganized wide ranging moves at the high of an extended impulse are the footprints of the bulls losing control of the tape. Orders of magnitude are always important to monitor. At the end of the great bull market the 535 and 650 point ranges represented moves of about 13%. The current expanded range is only in the order of 3%. Traders who recognize these subtleties will always have the advantage.

Multi sector daily chart:

The computer hardware index was top gun, making a backwards breakout of a rising wedge.

The SOX recorded and closed at a new high on the move.

The OSX is getting closer to the measured move target at 272.50.

The cyclical index, CYC, posed a strange looking candle at range high. If these prices are correct this is a very bearish development.

The BKX remains trapped in the same range.

The higher prices seen yesterday in the XAU were stuffed by sellers. This is typical when trying to pivot higher and isn’t necessarily a bounce killer.

The Dow Transports are dangerously close to a breakdown. Down 2% on the day the TRAN grossly underperformed the broad market.

The airline index, XAL, is at the last level of support before a breakdown. The static trend line is the last area of support before a trip to the 200dma and August highs. Note that the bar count is only 4 days down and price is already interacting with the static trend line. This is generally bearish.

Oil:

Gold:

The SP recorded a new intraday high on the move but failed to settle at a new high. There is a small gap left on the chart from Tuesday’s close.

Naz was high on the day by 15, slightly outperforming the broad market on a relative basis. The banking index was notable weak, weighing on the SP. Naz didn’t produce a new high on the move as the SP did.

The multi sector daily chart highlights the new high in the OSX and the aggressive bounce in the XAU.

The 10-day Trin advanced to close at 1.20 which leaves it plenty of gas in the tank for higher stock prices.

The OSX was the top performer, making good on the lower tails and breaking to a new high on the move. The next price objective is the 62% fib extension.

The XAU posted a huge bounce off the static trend line. Price may need a measuring day before closing above the 10ema which would turn the chart short term positive. Keep in mind that after a bounce, a close below the recent lows would be very negative and develop genuine downside momentum.

The Cyclical index, CYC, rallied to test the prior high. A new closing high would be good leadership for the broad market.

The BTK was higher by 11:

The SOX was higher by 4;

Sox
The BKX continues to struggle. There has been a lot of talk recently about how good the banks look, but the reality is that they are greatly lagging the energy, agricultural and hard cyclical names. MACD is negative and there is an active Seeker sell signal in place. A break under 52 kicks in a mini H&S pattern and perhaps more importantly puts in a lower high cementing the underperformance vs. the broad market.

Oil bounced but was unable to settle above the prior day’s high:

Gold bounced off the static trend line. The bears are in charge until the 50dma (red) is reclaimed.

The SP advanced 5 handles, making a new high on the move and disqualifying the Seeker 13 countdown exhaustion signal.

Naz was higher by 11 which is a new high on the move and new closing high. The reaction to the AAPL earnings will likely dictate whether the nest Fibonacci extension comes into play at 2383.

Multi sector daily chart:

The $US was weak and the XAU took advantage of a minor oversold condition, to close the day as the top performing sector. There is really nothing new technically, just a small bounce within a downwardly biased sector.

The BTK broke above the first measured move target which puts the Fibonacci next target in play.

The OSX did not respond to the tt candle and traded inline with the performance of the broad market.

The SOX was little changed on the day. There were earning from some of the index members and associated stocks that will influence price Wednesday.

The BKX made good on the tt candle and posted a distribution day. Note that this is not a reversal candle since price was contained within the prior day’s range. Set an alarm for a break under Friday’s low.

Oil continues to consolidate under the 2010 high:

Gold remains above key support at 1350: