Markets had a topsy turvy day Wednesday as indexes were lower in the morning, after overseas weakness, rebounded nicely then ended up closing near the UNCH line. The S&P 500 is lower for the week headed into Thursday and a down week would be consecutive weeks down, a rare occurrence in 2014. Besides the very light fractional losses the weeks ending 5/9-5/16, you would have to go back to January to see meaningful weekly drops back to back. The index resides in no mans land caught basically in the middle of the round 1900 handle and 50 day SMA resistance. The Nasdaq continues to spoon its own 50 day SMA although it is fighting resistance there. If this persistent 50 day SMA resistance with the Nasdaq remains perhaps a good trade would be an entry in the SQQQ with a buy stop above its 50 day SMA at 43. The ETF gained 6.6% last week and perhaps the similar 6.6% week ending move from 3/28 resulted in the following two weeks gaining 9%. Will that occur again? Who knows. Talking about ETFs everyone is watching Germany and the EWG. This looks severely oversold as it is lower 4 of the last 6 weeks and 3 of the 4 down weeks were lower by at least 3%. The utility group has not received much attention lately even for it miserable recent behavior. The XLU is down 3% so far this week alone and looking at a fourth consecutive weekly fall.

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