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Minyanville's T3 Morning Market Call: Back and Forth Action Continues in Market

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The banks have been a bit mixed but still hang around. Citigroup is acting best.

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S&P (INDEXSP:.INX) futures are down 10-12 handles this morning as the back and forth action continues. This is the type of open some would probably have wanted yesterday to potentially buy. But that's the way it's been going these days, as the setups are not the easiest.

Yesterday, the S&P bounced back to Resistance No. 2, where it was contained. The index touched the 1573-1576 zone, which we can now treat as our new pivot resistance. In order for the "right shoulder" to build the market shouldn't go much above that in coming sessions. For all you bears out there, here are my comments to Patti Domm in the CNBC worldwide blog last night: Scary Pattern Could Be Forming on S&P Chart.

Support stands at 1560ish and then 1552, with the 50-day moving average at 1541. The charts of the Russell ETF (NYSEARCA:IWM), Transports ETF (NYSEARCA:IYT) and the Homebuilders ETF (NYSEARCA:XHB) each has a pattern more bearish than the S&P. It might be prudent to watch these groups to see if they lead the way lower. The Energy ETF (NYSEARCA:XLE), Oil ETF (NYSEARCA:OIH) and Agribusiness ETF (NYSEARCA:MOO) are also relatively weak.

The banks have been a bit mixed but still hang around.

Goldman Sachs (NYSE:GS) came out yesterday with what looked like a solid report but was sold on the open. Keep an eye on $140-$142 as important support.

JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) also have been out of play since their decent reports.

Citigroup (NYSE:C) is acting best. It wanted to bounce the day after its report, but the broader market weakness prevented that from happening.

Bank of America (NYSE:BAC) also came out with a decent report this morning, but it's trading down a bit too. It has come a long way. An up open would have been better, but now I'd like to see it hold the $11.70 area.

Tech continues to be mixed.

Barron's put a positive spin on Yahoo (NASDAQ:YHOO) this past weekend at $25, which is somewhat funny as the times to get involved were $16.60 and then $21.75. The $25 area was the target from my 2013 thesis. Revenues in last night's earnings report were a bit shy and it's lower this morning. I don't think it will fall apart. Perhaps you could look to buy that dip at the $22.27 area, which is the 50-day MA.

Intel (NASDAQ:INTC) had a mediocre report, but the stock has been priced for nothing so it might hang in there.

Amazon (NASDAQ:AMZN) continues to act well and its holding above $267 would be constructive.

Google (NASDAQ:GOOG) is still trying to hang in there but it needs to stay above $768ish. I'd avoid this stock until earnings.

Apple (NASDAQ:AAPL) is still above $419, but there is not much going on here. Earnings are next week.

EBay (NASDAQ:EBAY) acts okay in this tape. Holding above $55 would keep it out of harm's way.

LinkedIn (NYSE:LNKD) is very close to recent highs - if it can stay above $175ish traders will likely stay involved. It still looks good.

Facebook (NASDAQ:FB) is still very choppy with not much excitement. Wait until earnings, as it needs to stay above $26ish to maintain any bullish composure.

Metals did not have much of a bounce back yesterday. The Gold ETF (NYSEARCA:GLD) tried yesterday but couldn't hold the overnight gains. Use $130.50 as pivot support if you are trading it in this lower area. It could be choppy for a while but ultimately it feels like it could see $123.50-$127.50.

Some traders (like me) got caught flatfooted with very limited longs. I do think being more tactical here makes sense, as the recent weakness feels a bit different.



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Scott Redler is long BAC, FSLR, YHOO calls, BAC calls, INTC calls. Short SPY.
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