The question for the week is whether the technology will pull the market up or the market overall will drag the technology down.
QQQQ and SMH looks health, but DJIA and SP500 are inconclusive as what the next step might be. However, the old culprits, XLF and XHB are simply bouncing off oversold territory and soon facing their first resistance, so, the answer to the question will be revealed in short time. We shall see.
The consumer discretion and transportation do not offer much hope while Oil still looks bullish despite the talks of production increase from Saudis.
Tomorrow, we will have a peek into inflation, housing and production. Obviously, PPI is the most watched number, and it wouldn’t be pretty if anybody has stood by the gas pump or shopped in grocery store. Not to be missed is the earning from GS as well, the market seems bet the earning will be good. And if it indeed is, that will sooth the market a little.
The agribusiness may be a little overbought for the time being, but we know what a crazy market could do. Any pull back maybe another buy opportunity.
Metal and GLD are at their resistance. It might go down if the condition is right.
Steel seems running out of steam if the recession talk persists.
Coal is just as hot as oil.
Overall, we would suggest continued caution when go long.
