In tech news, Apple has been a stand-out over the last few sessions since the lukewarm Samsung Galaxy S4 release.
Futures were quiet overnight as the world markets normalized a bit. Japan bounced back 2%, China bounced back about a percent, and Europe was down slightly.
US markets took the Cyprus news in stride as we wait for the “key vote" today. The amount of obsession in the media over this news has today feeling more like Thursday than Tuesday.
Yesterday’s action did give some opportunity for everyone to make adjustments. If you lost sleep Sunday night, perhaps taking some risk off or making some moves as the market tried to go positive made sense yesterday. The S&P (INDEXSP:.INX) low from yesterday is 1545 with bigger support under that around 1530-1534. Resistance now stands at 1555 and then 1563.
I will say there was a ton of frustration as patient bulls probably didn’t do much buying on the open, and if you are a bear waiting to claw -- and if you shorted Sunday night, or pressed shorts on the open -- you probably feel more uncomfortable than those who had too many longs on over the weekend. Big Ben starts who a two-day meeting today that seems to have a bit more emphasis than in the past.
There was lots of mixed action yesterday. As strange it feels to say this, Apple (NASDAQ:AAPL) has been a stand-out over the last few sessions since the lukewarm Samsung (PINK:SSNLF) Galaxy S4 release. Everyone hated AAPL at that stage and thought the new Samsung phone could be the knockout blow, but instead AAPL has rallied to break the downtrend and is providing rare follow through. It was one of the first stocks to go positive yesterday and is up again this morning. The next level of resistance to watch is the 50-day moving average, which currently stands at around $464.
The banks were weak yesterday amid the Cyprus news, with some varying relative strength and weakness in the sector. Bank of America (NYSE:BAC) has stood out over the last week and that continued yesterday, while Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) were weak yesterday.
Overall, tech names aside from AAPL are starting to weaken a bit. Traders will be watching closely to see whether some of these recent pullbacks in sector leaders will be buyable. Google (NASDAQ:GOOG) has been bleeding lower over the last two weeks and yesterday failed to reclaim its 21-day moving average. We will see whether that relative weakness continues. LinkedIn (NYSE:LNKD) reversed after a Goldman upgrade last week and has been fading since. The stock lost its 8-day moving average yesterday, so watch to see if deeper retracement levels are tested. Netflix (NASDAQ:NFLX) has now given back all of last week's gains, but was able to bounce off lows yesterday. Short-term traders could use yesterday's low as a stop.
Scott Redler is long MGM, AAPL, BAC, DDD, FB, YHOO, ZNGA, S, F. Long AAPL call spread. Short SPY.