Many stocks in key sectors are not behaving well @ all.
There has been attempt to show strength by many stocks but few are staying above key levels.
I have not seen all of the key index and indices struggling to stay above 50 DMA after 6 trading days, normally when indices or index rebound they quickly move above 50 DMA and stay there.
Here is the real technical picture of key index / indices.
S&P 500 stocks below 50 DMA
Nasdaq below 50 DMA
DOW below 5 DMA
SOX below 50 DMA
RUT below 50 DMA & below 200 DMA
TAN or solar index is above 50 DMA & 200 DMA
Many stocks are struggling along with indices and are not showing any real strength.
As the saying goes " as goes SOX so goes the market "
I am having real difficulty in seeing any catalyst to take this market higher.....
It will be wise to have a defensive allocation until October roles around.
This market needs to find its footing which could be well below current levels, normally test of 200 could be the key.
In the meantime stay with less exposure and be diversified in many sectors.
Good luck with your own interpretation of this market and your own comfort level.
BLOG does NOT give buy or sell.
Saleem
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