In recent days I have written here about the how TLT $100 looked like a breakout and a flight to safety. Last night TL closed right at $100 and gapped above it this morning leading to a tremendous selloff in equities. The major indexes were down over 3% and the materials/commodities complex got crushed.

SPY $104 acted as a magnet for the market and the question now is, do we hold here or take another leg down? The rally to resistance (SPY 112/113) on light volume and then the sell off on heavier volume had to be discouraging even to the most bullish of bulls. On a longer term view (SPY weekly chart) you can make the argument that going back to the week of MAY 23rd 2008 we have made 4 consecutive lower highs on the SPY weekly chart and that we are in the process of breaking down through a bearish triangle. In short we really need to hold here.

Unfortunately the choppy and lackluster market we have been experiencing lately has left us very few clean spots to take advantage of. So what I think/hope is going to happen is that we get a good panic gap down which will give us a shot to buy some solid support. The market is oversold and at some major support, not necessarily a bad thing.

The following ideas may be actionable tomorrow, but remember the rules for buying reversal/support. No catching falling knives. Look for the stock to come into the level vertically on light volume and no news. Allow the stock to break the level snap back and buy it on the way back up through the level using the low of the candle as a stop. Also, only try this the first time around. The second test is subject to failure.

The following ideas may be actionable tomorrow but there are enough ideas here to let a few pass and see if we are snapping back or taking another leg down. If stock after stock goes crashing through support like it wasn’t even there then step back. This is an important spot in the market and we may see a dog fight here.

aap 48.32 reversal/support buy on 50 day MA

alb 38.32 reversal/support buy on 200 day MA

amx 47.63 reversal/support buy on 200 day MA

au 41.97 reversal/support buy on 50 day MA

chd 62.81 reversal/support buy on 200 day MA

clx 61.59 reversal/support buy on 200 day MA

cree 58.77 reversal/support buy on 200 day MA

de 54.24 reversal/support buy on 200 day MA

eog 95.73 reversal/support buy on 200 day MA

esrx 45.89 reversal/support buy on 200 day MA

intu 33.2 reversal/support buy on 150 day MA

rmd 58.76 reversal/support buy on 150 day MA

sanm 12.85 reversal/support buy on 200 day MA

spg 78.23 reversal/support buy on 200 day MA

tii 17.23 reversal/support buy on 200 day MA

trw 25.32 reversal/support buy on 200 day MA

wfmi 34.07 reversal/support buy on 150 day MA

whr 84.87 reversal/support buy on 200 day MA

wsm 23.52 reversal/support buy on 200 day MA

mur 49 short