Selling Contained

The market opened in the red but if you look at the short-term range the majority of the major sectors are in a bullish trend. In spite of the pullback yesterday the S&P 500 ($SPY) broke resistance at $212 this week and is still trading above its support of $207.50. Until there is a break of $207.5 on the $SPY, the trend to the upside is still in play, and the bulls in the short-term continue to control the trend.

Tech has been a leader as of late, with the NASDAQ ($QQQ) bouncing off the $107.5 a few weeks ago, and then breaking above resistance of $111. As I said earlier this week a break and settle above $111 on the $QQQ and could potentially catalyze a further upside target of $115-$116 area on the $QQQ.

The Dollar ($UUP) has gained some strength as of late, bouncing off $24.5 twice in the last month. Technicians call this a double bottom. A challenge of $25.50 looks to be in the cards for the Buck. A break of that level would be a bullish sign and a reversal of the recent down trend that started in mid-May.

Gold ($GLD) continues to be a choppy trade but it is clearly to the downside. If you look at spot Gold $GOLD, a break of the $1170 level could catalyze the selling. You will want to keep an eye on that level if you are long the shiny metal.

Have a good trading day.