The markets have started the week, which was shortened for the MLK holiday, with a move to the downside as investors question the strength of the world economy and technical traders note the resistance levels in the broad-based indices. The S&P 500 (SPY ) perfectly hit their downtrend resistance, where they began their selling.
The Nasdaq 100 (QQQ ) has also hit a technical resistance area after just poking above the 50-day moving average. Since hitting a low back in December the QQQ is up over 12%.
Oil (USO ) sold off again on Wednesday and continues to be one of the downside leaders. The price per barrel has been stuck at a technical resistance area of around $54 as investors await the crude oil inventory report. The number will be out tomorrow due to the holiday Monday. Since hitting a low in December, the price of oil is higher by over 20%.
Transports (IYT ) have been one of the downside leaders this week as well. The move so far has retracted all of the gains seen on Friday and very nearly erased all of the gains seen last week. Technical traders will note the resistance along with the downtrending 50-day moving average.
Utilities (XLU ) continued its move off lows this week after the end of year selloff. For the last few weeks utilities have traded in a larger range, but technical traders note the series of slightly raised highs and softer lows.
Homebuilders (XHB ) have pulled back this week as well. Though mortgage applications spiked sharply over the last two weeks, a big miss in existing home sales yesterday has investors holding off for the time being. Technical traders note the resistance area at the $36 level.
