Fed Chair Yellen speaks with Congress to assure rate hike not imminent, oil rallies off the lows, earnings good for the day, you pick which reason made since for the bounce off support. Buyers were willing to step in and put money to work. Need to close above the 2021 mark on the S&P 500 index to keep the dream alive.
Futures are pointing lower currently and we could test the lows again depending on how this unfolds early today. It is this type of choppy day to day moves that keeps us from taking the risk currently of putting our money in harms way. With the indexes down 2% this year we are still in good shape. Patience is always rewarded.
Sectors to Watch:
The downside still posses risk for looking forward. Using Thursday’s numbers as key support to hold with the futures pointing lower we may test this today. If we close lower short trades in SDS, QID or TECS are on the watch list.
SPY and support at the $199 mark. breaks… opens the downside trades.
QQQ and support at the $99.70 mark. breaks… adds to downside pressure.
XLK and support at $39.85 mark. breaks… leads the NASDAQ lower.
Gold miners testing the micro uptrend. Watching to see how it unfolds the test will either validate the trend. Upside is still the trade.
Result for the Daily EGG Scan:
Downside is setting up for the broader indexes and we will look for confirmation on trade opportunities that are setting up as a result. Risk is high and I remain cautious for now.