We were due for a big drop, and we got it yesterday, but volume was not quite as high as I expected, which is probably a good thing, although so far the bounce we are getting is pretty weak.Yesterday's low was down around 1340, and I'm guessing the first resistance level we see should be at 1354, putting 1348 in the middle. So far, the market seems reluctant to go above 1348, and we probably have some work to do down here before making a move up. Any move higher will, until proven otherwise, become a selling opportunity. I have not seen IBD's market wrap video from last night yet, so I don't know what the market status is (I will watch it later this morning so you don't have to), but I am treating it as if the market is in a correction. We have 3 sectors leading today: XLF, XLI, and XLK. Lagging are XLU and XLP. Both the Nasdaq and Russell 2000 have pretty good leads. I have oil down, gold up, and treasury yields up.
I have 24 new highs so far, with breakouts in AMTG, GCA, ALOG, CKEC, and DISH. I have 2 reports from last night: MAKO down 1% and HTCO up 0.4%, and 2 this morning: AEO up 5.6% and
AVAV down 2.9%.
