The majority of sector ETFs closed their week below their 50d with energy having filled the gap.....and found sellers waiting there.
SPX itself found sellers at $2100 (clearly we weren't the only ones selling) which is 17x earnings. More and more are accepting reality that earnings have dropped the most in six years and the Fed (with no QE) will most likely begin to slowly raise interest rates in September. Don't believe me, just ask Barclays.
- US dollar found buyers at the 10week sma, prior support. Yes, they're taking profits. Will it continue? It's nonetheless weighing on U.S. earnings.
- China allowed further stocks to be shorted and talked of tightening margin lending. They hit the sell button.
- Utilities are being held by their 50d - won't raise much if rates are going up.
- Transports are being held by their 20d bu the 50d is just overhead; waiting.
- For months money has been flowing into overseas markets searching for yield.
- Not to Greece though (although Putin le
