Markets spent the vast majority of Tuesdays session underwater and they did finish off lows, but this seemingly never ending wall of worry looks as if it is becoming fatiguing on the major benchmarks. The S&P 500 closed lower by .2% and the Nasdaq by .3%. The Nasdaq still looks the best to me as it fights mightily to hold onto 50 day SMA support. It still trades above the 4347 cup with handle trigger it took out on 6/18, and has held that pivot on a closing basis every day except 8/7. For me to become very bullish on this index it would need to take out a current double bottom base above 4486. That level currently stands as a double top created on 7/3 and 7/24. Energy was again a laggard today and that remains a big concern. Talk about all the geopolitical risk, which may alter day to day moves, but a trend has been developing now for sometime, and could represent a slowing economy. The OIH fell 5.2% the week ending 8/1, and last weeks UNCH finish was hardly inspiring. Leader EOG is potentially looking at its first four week losing streak of 2014 depending on how this week fares. Best of breed play APC sliced its 50 day SMA. A lower energy price they say is a tax break, letting consumers pump more money into spending. Wonder if they are spending that extra dough at KATE?
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