The indexes were flat on the day, but with the exception of energy I thought the individual sectors looked awful. There was another big volume bar in the UUP and a close above the 20 day MA. If this continues it could spell trouble for the market.

Still the NASDAQ and the S&P are above their 50 day MA’s and reaction to those levels is going to be key to the near term performance. Like yesterday I feel that if we approach SPY 105 in a quick vertical fashion we could see a nice bounce. If there is a second meaningful test however it could be a problem. Take a look at the RIMM chart from today and the $64 level for an example.

BAC and HIG look good on the short side in financial/insurance weakness, watch C and PRU with HIG and BAC. If we get another strong down day in C and PRU their 20 day MA will cross the 50 on the downside. Also for financial strength and general market health watch GS 176.86 that is the 50 day MA.

It’s kind of extended but XOM has a nice clean long spot at 75. Careful with that one oil numbers are out at 10:30.

bac 15 229
hig 24 11.5
xom 75 21

I am reluctant to tops and bottoms but we really need to hold these levels if we have any shot of resuming the uptrend any time soon.