Most U.S. stock market indexes are trading down slightly with Europe and Asia largely mixed.
Investors are still seeing signs of risk-off behavior with the USD/JPY (dollar/yen) sliding to lows of the year, Treasury yields trading slightly lower, and gold and silver higher.
The S&P 500 (INDEXSP:.INX) is still very much mixed trading between 2445-2466. Any move UNDER 2445 would allow for acceleration, which likely shouldn’t be bought right away given seasonal tendencies and breadth deterioration of late.
Overall, the mood right now has gotten downright glum with the ongoing hurricanes, lack of success in tax or healthcare reform and this has spilled over to the market making it difficult to make money. The recent downdraft in the Financials Sector (NYSEARCA:XLF) is particularly important and it will be key that Technology (NASDAQ:QQQ) DOES NOT join this weakness in the days ahead. I wrote about this on Wednesday. Insurance sector weakness likely won’t end for another 3-5 days given the uncertainty regarding hurricane IRMA.
Healthcare is standing out as one of the better sectors in terms of risk/reward, but more towards the Pharma end than Biotech in the next 60-90 days.
Here are a few charts I’m watching:
S&P 500 futures
Minor pullback hasn’t done too much damage this am.  And unless 2443 is broken, most of this is just noise. The S&P 500 is still within the 3 day range that has held prices since earlier this week. Above 2467 has importance and is positive while UNDER 2443 a negative
Copper
Signs of a trend reversal are happening and it’s likely we see at least some evidence of pullback in the days/weeks ahead after this runup.
Prices reversing at the upper Bollinger with Weekly TD SELL SETUPS and daily counter-trend sells suggest Selling Copper here makes sense in the short run, expecting pullbacks under 290
Dollar/Yen
The currency pair is stretching down to lowest since last November. Getting stretched here and next week’s BUY SETUP could create a bounce.  However, breaking prior lows is a definite negative structurally so we’ll need to see the evidence of this trying to turn back higher
Thanks for reading.
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
