It was an incredibly dull day by the standards of the last two months. We gapped lower, filled the gap by mid-morning, and gradually drift higher to finish about 40 basis points up. The significant level of resistance lies at 2845, approximately where we closed. It doesn’t seem overly surprising to see that very little was accomplished yesterday, with a whole bunch of data on the horizon. There is very little that changed from a technical standpoint, and the charts, in my opinion, still point lower.
S&P 500 (SPY)
The technical damage done to the charts last week remains, and there simply was not enough yesterday to help with that repair. The level of support around 2800 remains the most critical level for this market, with a break starting what could be a cascading move lower.
NASDAQ (QQQ)
The same holds for the NASDAQ with a significant level of resistance at 8725, and support at 8450.
Russell (IWM)
The same damage still holds for the Russell 2000 (NYSE:IWM) ETF, for which I still hold puts. For now, resistance remains at $126 and support at $118.10.
AMD (AMD)
Advanced Micro Devices (NASDAQ:AMD) had a good day, but I think it fails when it reaches resistance at $52.90.
JPMorgan (JPM)
The chart on JPMorgan Chase (NYSE:JPM) doesn’t precisely look inspiring, and sort of like a bear pennant. That would not be good for anyone if that is the case, with lower prices on the horizon. This one must be watched closely.
Citigroup (C)
There is a similar bearish pattern also for Citigroup (NYSE:C).
PayPal (PYPL)
I find it interesting how PayPal (NASDAQ:PYPL) is trading right back at its all-time highs, but yet none of the other processors are. I guess we will find out when they report results if the move higher is warranted. For it seems pretty clear where resistance is. You could even say the chart looks bullish.
