U.S. Equities

SPY/ weekly

1) 184 is now support

2) A close below this level would be important for the markets

3) And in my book necessary to turn investors bearish, which in all likelihood is bullish for equities

QQQ/ weekly

1) Prices bounced where we expected and right on schedule — at the 40 week moving average

2) Prices remain in a tight range between resistance (87.28) and support at 85

IWM/ weekly

1) 115.79 was support but it is now resistance

2) The 110.62 also has broken

3) Prices are below the much watched 40 week moving average

4) Look for the bounce through the 110.62 level

5) But ultimately, we need lower prices and more investors turning bearish before a sustainable bounce can develop

Foreign Markets

EEM/ Emerging Market/ weekly

1) A close below support at 38.77 and then a break above is a sign of a double bottom

2) Now prices are above the 40 week moving average and pushing to resistance at 43.20 -43.34

3) I have been saying this for weeks: “It appears money is rotating into emerging markets and away from the US”

EWJ/ Japan/ weekly

?

1) EWJ hangs in there and refuses to fall apart

2) Those red labeled bars are positive divergence bars and a sign of a bottom

3) A good low risk entry as support levels are clearly defined

VGK/ Europe/ weekly

1) Just choppy price action but prices have broken resistance and appear to be pushing higher

2) Would prefer to wait until US equities are “buy” again

EFA/ Europe – Far East – Asia/ weekly

1) Just choppy price action but prices have broken resistance and appear to be pushing higher

2) Would prefer to wait until US equities are “buy” again

Bonds

BND/ weekly

1) The technicals and fundamentals are both bullish and I have been stating this since the start of the year

Putting It All Together

1) The SPY is safely above well delineated support levels

2) IWM and QQQ are lagging

3) I guess this is the message of this mixed market  — speculative issues aren’t in vogue

4) EEM has shown some strength but resistance is looming

5) EWJ is hanging in there as well and what looked like a major top has now turned into a possible bottom — there are rumors of market BOJ intervention (convenient)

5) Bonds remain technically and fundamentally a buy

6) The sentiment picture is skewed bullishly but I would not call this an environment where we should expect strong upside price momentum