With yesterday's selloff stocks and other risk assets came to important support levels.
Yesterday's session came on good volume although not great volume…and the SPX found support at teh 50 sma. Some stop losses certainly triggered, the question is if that was enough for longs to get the upper hand again…we shall see.
On the economic front the Philly Fed survey was weak but first time jobless claims continue to fall.
The pennant in the SPX has resolved to the downside but like we continue to point out…something just doesn't feel right that this would be the right move here and will just continue lower…it's just too easy. Everyone is so beared-up that a counter bounce soon seems likely.
Emerging markets equities came under pressure as well and the EEM etf broke near-term support at $39. Nothing actionable at this stage but worth keeping an eye on.
Apple broke below our support line of $380 we talked about so much and may have room to slip lowe to the 200 sma (red line). It looks like an interesting short setup and we are still contemplating adding it today for Bucket 2.
On the individual stock front other than AAPL we have a couple of new candidates we are watching in case they break higher: ZAGG and DAR. They might be solid Bucket 2 trades should the market pop a little more in coming weeks.
We are also still interested in BAC and MS should funds chase performance…if and when that is.
