Juggling Dynamite

“The Dow is looking pretty bearish,” says Abigail Doolittle, of Peak Theories Research, adding that FCX recently made a bearish “death cross.” Here is a direct link.

My partner Cory handed me some chart updates this morning, showing the technical damage caused by the sell off in stocks the past couple of weeks. While we are rallying so far today (and interim green days are to be expected) major markets look vulnerable from current heights. The pre-LTRO levels of late last fall (tested in Nov and Dec 2011) would be the first major downside test, around 11,500 on the TSX and 1,100 for the S&P. If that level held on a third test it could be short-term constructive, but if prices failed there it would leave the door open for a significantly lower test for stocks this year. Time can only tell.

David Murrin, CEO of Emergent Asset Management, appeared on CNBC Europe to discuss some of the key reasons for near-term risks: “We spent the first quarter rallying in what I would call a corrective rally and that is finished. I think the peak that we had at the end of March is the equity peak for the year and we are now into the more impulsive declines.” Here is the direct link.

Jim Bianco, president of Bianco Research LLC, and Michael Gayed, chief investment strategist at Pension Partners LLC, talk about the outlook for the U.S. stock market with Gary Shilling of A. Gary Shilling & Co. Here is the direct link.