Markets opened at new highs for the year and hit 1351 ($135.22 SPY). It then traded below the 1349 pivot (Yesterday’s high of $135.02 on SPY). That was a small sell signal. If we get weaker and they don’t save them into the close, this could develop into an outside day.
Stocks are not falling apart but there are a lot of topping tails in some key stocks. Some corrective action would be good and healthy, as long as Greece sorts out its mess. I did on my radio see a divergence with the VXX—it was the first time market pushed higher and it did not go down. That was a bit of a clue to get out of some stocks
SPY big support is the three day floor around $133.70-133.85, then $133.40.
Watch Apple (AAPL). If it gets below and closes below $469.75, it will help contribute to the correction process.
*DISCLOSURES: Scott Redler is long SPY, OIH, JPM, QCOM, AIG, WMT, LULU, SLB, VXX. Short DIA, AAPL.
