Guru View

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The stock market has reversed after first testing new
highs (for the week) on Wednesday following the FED
decision - only to dramatically sell-off on Thursday
violating short-term support.
This breakdown in price is starting to confirm the
bearish COT charts of the Nasdaq 100 and Russell
2000.

It looks like we are headed for a test of last week's
reaction-lows. Here are the support levels:
Dow Jones- 13,400 | 134 for the DIA etf
Russell 2000- 790 | 78.5 for the IWM etf
S&P 500- 1,490 | 149 for the SPY etf
NASD 100- 2125 | 52 for QQQQ etf

Even though it declined for the day, the Nasdaq-100 price
chart continues to look the most constructive out of all the
indexes. The intermediate trend remains UP unless we
start to break below critical support at around 2125.

If the above support levels are taken out, the US stock
market is going to start to paint a bearish trend. Consider
the breakdowns in financial companies such as Citibank.
Also keep in mind that the Russell 2000 closed below 800
today. Last time that happened, the RUT reversed in the
very next session - to the upside. We'll see if the bulls
show up this time around...