We got some serious selling today for the first time in two weeks. Micron (MU) takes a good part of the blame for their comments about flash memory demand but I think all the Fed-speak from Pianalto and Fisher played a part as well. Not to mention that we were very overbought and folks just needed an excuse to take some profits.
The S&P 500 finally broke that week-long narrow range:
The Russell 2000 appears to be heading back to 800, which *should* become support.
The Nasdaq slipped back below the December highs creating what appears to be the second head-fake above that level. It’s had several distribution days since late November and I wonder if they will start to have a negative effect:
Since Micron & the semis get a good part of the blame for today’s drop I thought I’d post the SOX. This chart is a mess. It was looking promising in November and December but I don’t like the (still) declining 200-day moving average. The 50-day moving average is also decling now. I want to see it take it break above the higher blue trendline for me to feel good about the semis.
10-day moving averages were broken on the NAsdaq and S&P 500 so their short-term trends get switched to down.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Down(-) | Down(-) | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
I might pick up some IWM Calls if we get a nice bounce off that 800 level on the Russell. That 800 mark just seemed like a dang milestone trying to get over it, I watched it for weeks banging right against resistance waiting to either go long on the Futures market, or buy the ETF Call Options. Good Stuff.