The whipsaw action this week continued as the market tested its Tuesday’s lows and then some following another back test to its major MA’s (moving averages). The Dow tested its 50-day and 100-day MA’s and is at a very technical level as a golden or bearish cross continues to play out.
The S&P 500 danced with its 100-day MA while the small-caps and Tech finished in no man’s land and in between their 100/ 200-day MA’s.
We had a feeling this week’s action would come to a boil today with a couple of heavyweights from the financial sector reporting earnings. With the sector lagging the market’s overall gains in 2013, we have said the Financial stocks need to show some strength and leadership so watch them at the open. (continued…)