Market Wrap Up 05/13

After trading in a tight range for most of the day, the $SPX sold off sharply into the bell to close down 1.22% at 1157. Despite making several attempts at recapturing the 50 day moving average, the market rejected that price level today.  However, there are several key support levels below where the bulls will likely try to take a stand. Because we remain in a choppy, uncertain, news driven environment, a large cash position remains preferable.  Aggressive traders can have some short exposure, while any longs should probably not be initiated for anything more than a daytrade at this point, given our position below the 20 and 50 day moving averages.

The key support levels are 1155 and 1150, while the key resistance area to watch is the 50 day m.a. at 1174.

The semis had a notably weak day today, as their sector ETF chart indicates.

I am looking for more short exposure on further weakness here, to compliment my existing short position in the financials.  The financials ETF chart, updated from yesterday, continues to look bearish.

Many traders are keying in on the Euro for a variety of reasons, namely as a gauge of either risk appetite or risk aversion. The ETF shows us that the currency is at a crucial level right now.

Finally, here are updated gold and silver charts. I still like both metals, as they appear to be taking a healthy short term rest.

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