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| SPX Daily |
The bears finally stepped up today and pushed the SPX down to the 1400 level. This is a tough spot.... on one hand we are at potential support, and anyone who missed the rally up to the highs will be anxious to get involved. 10yr futures rallied up to the high area of the breakdown zone (1.65ish% yield) and never did push above it while S&P futures were pushing into the lows of the day (that's potentially bullish). Short term indicators are also very close to looking ripe for buying.
On the other hand, there are still a lot of intermediate term indicators that are suggesting higher risk is on the long side. I don't get the feeling that we've seen any kind of washout, and I'm not even sure if today qualifies as a decent shakeout. It seems like the Naz Hundo (NDX) is similar to a tree full of bulls that have yet to feel much of a breeze. That could probably be taken bullishly too though, as AAPL and GOOG have barely budged in the last few days.
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| NDX Daily |
When I look at this NDX chart, I get the impression we could see more of a shakeout. 2725 is a high volume zone that would be the first level of potential support if the bears push down again. That would probably coincide with AAPL testing the 630-640 breakout level... and could provide a decent bullish setup.
