The markets follow through on the early warnings and sell lower. The reasons are plentiful, but the charts reflect the emotions creeping back into the markets. Last night the earnings from Yahoo and Apple have the NASDAQ trading higher pre-market. Challenges remain along with hope… neither are good trading strategies. Patience as we let this unfold and the direction established.
Sectors to Watch:
Emerging Markets (EEM) held the $40.25 mark of support. Held the uptrend off the December low. Trade opportunity for the ETF still in place.
Gold miners testing the micro uptrend. Watching to see how it unfolds the test will either validate the trend and it did on Tuesday. Volatility in the trade makes most nervous, but still pushing higher within the volatility. Upside is the trade.
Crude oil is testing the two week bottom range. Breaks support this could get ugly. Looking for modest bounce… Tuesday was better, but the downside back in play overnight. Oil Services (OIH) attempting to break from a base for upside trade.
Solar (TAN) made interesting break through resistance on Tuesday. Watching.
Result for the Daily EGG Scan:
SOX index failed and move lower on Tuesday… back to the drawing board. This is the challenge of a choppy market trades fail to develop or fail on the breakouts. Confirms no trend for the market overall.
Still Watching IWM or MDY as opportunity if we can find some stability in the trend.