They say its not where you start but where you finish. Markets today displayed hallmark bearish traits going out hard upon their lows. The market has felt heavy and bulls and bears can paint a picture fitting their biases. The bull can say the S&P 500 is just 1% off recent all time highs while the bear will conclude for that reason alone it still has that much more run to fall. By the day it is getting harder for bulls to defend the action in the tech arena. Since the 6/9 bearish engulfing candle on the Nasdaq trade has become wide and loose, another hallmark bearish characteristic. Today that benchmark felt the pain the most with a drop of 1.8% and we like to monitor the candlesticks. We spoke about the engulfing candle on 6/9 and yesterday registered a bearish counterattack name. Of course price action is the most important guide but when a couple candles begin to occur in close succession it speaks loudly. The Nasdaq, S&P 500 and Russell 2000 all are still just above their rising 50 day SMAs and until those lines are broken the bulls still maintain the benefit of the doubt. Looking at individual groups today it was just the financials that managed to gain of the major S&P sectors with the XLK rising a decent .5%, a respectable move considering the overall tape Tuesday. One would be wise to keep a close eye on the financial play below CBOE. Here is how the name was presented in our Wednesday 6/21 Game Plan and today it inched above the very round 90 number and a CLOSE above 90.40 could see a move to the very round par number.
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