Pullback is on schedule

SPY has been due for a pullback as was covered last week.

So right on schedule we have now closed below the 20d MA and headed for the 50d which is currently at 79.32.  The big question is not whether we will get to the mid-79's, but rather the question is whether we will bounce off the 50d or drop further.

We can look at some short opportunities in another post.  But also keep the list of longs close to take advantage of a bounce off the 50d.  FCX and MRVL seem strong.

Shorts that have come up on the screen are ALKS, SBAC and HURN.

XLF has had a huge run over the last six weeks.  Now negative rumors are not being ignored and that is a signal that the pullback is in progress.

LIke the SPY, we have seen the XLF close below the 20d MA and hte next target on the downside is 9.17 which is the 38% retracement.  

Regionals should outperform the i-banks.  MS still is trading above 23 and I took profits last Thursday.