Lots of Stuff at Support

I’m going to keep this simple tonight. These areas need to hold immediately –

Consumer Discretionary (Retail)
Retail is on the line of death and needs to hold here. Even if it does, there are a lot of recent leaders that are now broken and will not help the sector advance.


Consumer Staples
The stuff you use every day is also at critical support and needs to hold.


Financials
Banks need to rally ASAP, if the markets are going to rally into the end of June.


The Dow Jones 30
The Dow is at support and needs to hold here or things get real bad, real fast.


Unless the Fed does something truly stupid tomorrow, I think stocks can attempt to recapture their recent highs into Quarter End. Then you have July 4th a few days later, so you could have a light-volume environment in which to accelerate price moves.

We’ll see how it plays out. The issues is how will they bounce – what bounces and by how much? Watch the leaders of this move – China (FXI), BIDU, Goldman Sachs (GS), Apple (AAPL)… And the big financials - BAC, WFC, JPM…

Lots of areas and stocks have already broken down. So you are starting to see the Bullish Percent Indicator fall, as fewer stocks remain in uptrends. That weakening of the internals of the market is what leads to corrections – or worse.

I still think that this retest is the final retest of the Bear Market lows and the next leg up will be driven by Commodities and anti-Dollar trades. I expect to be able to buy and hold for an extended period on any weakness this Summer and Fall. If things change, I will let you know.