Indexes opened down modestly but a small wave of buying came in as we have quite oversold conditions. But it was not an impressive pop at all. The S&P 500 ended unchanged while the NASDAQ gained 0.05%. Not much economic news of note here in the U.S. but Europe had some news. Europe’s economic data showed Italy falling back into recession, and German factory orders declining 3.2 percent in June from the month before, with the disappointing numbers illustrating the impact of sanctions against Russia, a major trading partner for Germany.
Here are the longer term charts for the indexes as we do every Wednesday and it shows clearly why it is a time to be cautious.
The NYSE McClellan Oscillator is still quite negative.
We’ll look at some sector charts today and much like the indexes we see a lot of broken support levels.
You get the picture – we have some work to do to fix things on the intermediate term time frame.
We’ve been big fans of the emerging markets ETF (EEM) since late March when it broke out but right now it looks like a short versus the purple line we are showing below (mid $44s). If it breaks above that you stop out and call it a day.
Tesla Motors (TSLA) was a standout for the day to the upside; the company received a massive price target of $316!!