Thursday, August 15, 2013

SPY Falls to Support Levels...8.15.13

A nasty day of selling with the advance/decline line hovering at .10...meaning one advancing issue for every 9 not a lot of buyers.

Yesterday's TrendX indicated expected weakness and bad earnings reports by Cisco and Walmart set the mood for today's uber weak open.  Today's slide takes SPY down to previous support elevels and we may expect some initial buying at Friday's open although it is not at all clear that a bounce that will hold is about to happen.

Meanwhile, the commodities model has quietly come to life again in the short term metrics with silver, gold and basic materials (think metals) leading the momentum model returns. The model has been in the doldrums for a while and should be monitored closely to re-evaluate when the P6 goes downslope again.