Stocks Continue to Slide

I was looking at a 60 minute chart yesterday and noticed that in the month of June the $SPY (S&P 500 ETF) has formed its 3rd lower high, with its third gap, and remains in a slide to the downside. Now it is only three percent off of the 52-week high, but a challenge and break of $208 could catalyze the selling in the large Cap index.

I also looked at a similar chart, 60 minute, on the Large-Cap Tech ETF $QQQ.For the last 45 days it has been trading in a range of $106-$111 and is trading on its lower support level, ~$107. With two price gaps to the downside in as many days to the downside it has momentum. A break of the $107.20 area could catalyze the move to the downside even more.

Small-Caps ($IWM) were able to bounce off support, $124, and remains in an uptrend.  The out performance in the Small-Caps has me searching for small-cap stocks as buying candidates on pullbacks.

Bonds ($TLT) continue to slide to the downside. My colleague Joe Cusick from MoneyBlock has put resistance at $123 and a break of $116 would put the next support level at $107.5. Bonds right now are not the safety play they normally would be in times of uncertainty and remain in a strong downtrend.

The Dollar ($UUP) continues to trade in a short-term downtrend. The strength in the Euro ($FXE) will continue to weigh on the Dollar ($UUP) trade. Oil ($USO) looks to mount a challenge to break above the $20.75 level.  This would be a bullish event and a break from the down trend since early May.

Gold ($GLD) in the short-term continues to back off resistance at $114.

Have a good trading day.