$SPY continues to hold above key intermediate term support ~139.60 and below resistance of 141.00 While this range continues to hold, the markets should be viewed as “correcting through time” and be given the benefit of the doubt due to the longer term uptrend. A move below 139.60 would give us more reason for caution and a more defensive posture.

$QQQ also holds in a fairly tight range of ~66.40-6700 and should also be considered innnocent until proven guilty as long a support holds.

$IWM is under-performing again and it is back below 80, however the downtrend of the last month has been interrupted and now the market has the ability to put in a higher low to go along with the recent higher high. As long as this market does not violate the 78 level (approximate level of rising 50 day moving average- and not shown on chart) there is a good possibility that when this selling is completed the Russel could start regain some of the performance it has lost to other indices.

$SMH – semicondutor stocks remain comfortably above the important 3275-3300 level which has been so pivital this year. Because this rally has gotten somewhat extended, a short term pullback to that level would be welcome and could refresh this market.

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