It was a pretty lackluster day all things considered, but there was some real weakness in financials especially the regional banks (KRE) which have had a really nice run. Consumer discretionary, retail and real estate all out performed but they were all up less than 1%.


The thing that stood out to me today was the weakness in GS and GOOG. As you know there are certain stocks that I consider to be psychologically important for the market, GS and GOOG fall into that category. GS broke down through the 155 level which was the low from the first two days after the news of the SEC charges broke. It was an important level; the next support lies down around 150, the February lows. GOOG had a weak bounce off of its 200 day MA and then closed below it for the 1st time in a year. This further evidence that some of the momentum is coming out of the market.

Case Shiller HPI is out at 9:00 and consumer confidence at 10:00 but I am not expecting them to have any measurable effect on the market. I think before the FOMC announcement you are going to have pretty much what you saw today. The following ideas may be actionable tomorrow but don’t press. This choppy action is a pain in the short term but is giving the market a chance to rest and set up some levels for later in the week.

abx 42 long

aem 62ish long

gg 41 long

luv 14 long

sun 32 long

wlt 99.5 long

esrx 105 long

mfe 42 long

hgsi 27.37 long

ilmn 36.10/35.96 reversal/support buy on 150&200 day MA

aet 29.8 reversal/support buy on 200 day MA

agu 60.43 reversal/support buy on 150 day MA

dgx 56.65 reversal/support buy on 200 day MA

hum 41.53 reversal/support buy on 200 day MA

jpm 42.98 reversal/support buy on 150 day MA