Markets started the day in the red, and lived underwater all session long. A mid afternoon comeback stalled somewhat, but the benchmarks did feel pain for the second consecutive day. The Nasdaq took the brunt of the selling Thursday as it lost more than 1% for back to back days for the first time since 11/7-11/8. The index lost its 200 day SMA on 11/7, and fell precipitously until it had a mini capitulation day 11/26, which was the medium term low. The S&P 500 pierced the psychological 1500 level briefly intraday, but managed to close just above it. Time will tell if that handle holds. Even with the subdued day, 2 breakouts did manage to occur. Two cup base triggers were taken out today by SWY and AWAY. The pivots were 22.31 and 27.57 respectively. I went into cash today, as the action displayed by the benchmarks in my opinion is toppy in the short term at least. Wide and loose action normally occurs in near term tops. Two charts I am keeping my eye on are SDS UUP. The SDS, a doubly bearish ETF on the S&P, looks like it could make a move to 50 day SMA resistance. UUP was stopped at its 200 day SMA for the second time (other was 11/16/12) in the last few months. Volume was strong in UUP today, and I am looking for a move through that resistance line soon.
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