Sheldon Harvey, Navajo Artist Two Red Trixstars

Taken from the spelling “trickster,” we see two figures that possess secret knowledge that they use to play tricks or otherwise disobey normal rules.

In Native American tradition, the trickster represents uncertainty. The trickster loves to upset things and spread confusion. Tricksters can be shape shifters and so have the ability to transform into different animals.

Yesterday, the trickster in the market transformed from a red Bull into a red Bear. However, the trickster can alter his shape or bodily appearance in order to facilitate deception.

Did the market trickster play a trick on the Bulls? As tricksters’ schemes can backfire, did the trickster facilitate enough deception today only to shape shift back into a bull tomorrow?

After Monday when the S&P 500 and Nasdaq 100 made new all-time highs and the Russell 2000 cleared a 52-week high, trader bees went from pollinizing to the wrong end of a fly swatter.
 
Lots of instruments look like they had classic reversal patterns as in posting new highs or at least 60+ day highs then reversing hard. However, volume has been so scant, our trickster could be making mockery out of certainty.

Looking at the Russell 2000, the one index that last night had me thinking, “I’d be calling a top if it weren’t for this,” is a good example of the possible reversal pattern.

Without volume.

And holding the 10 DMA.

The only index that can make such a claim.

And there’s the rub.

My focus sectors in the Modern Family: Biotechnology, Retail, Transportation, Semiconductors and Regional Banks have mixed signals. A low volume reversal in Semiconductors could be troubling. Transportation had no such thing holding up over 142 fairly well.

Regional Banks barely budged with 42.00 the promised land. Retail may also have the low volume reversal pattern, but with good support at 45.00.

Our trickster targeted Biotechnology, the most speculated sector of the family. After stories emerged about a 500% price rise in Mylan Labs’ Epipen, speaking of bees, IBB got stung!

In just 1 day, Biotech took out the last 17 days of price action. To recover, IBB must get back above 290. Otherwise, 283 could be coming right up.

Curiously, Treasury Bonds did not panic. True, TLT remains in a Bullish phase. Nonetheless, TLT closed red where typically traders flock to long bonds as a safety play on down days.

With Yellen speaking at the end of the week, this won’t be the first time we wondered whether the Fed is the real market trickster. Ultimately, the trickster shows us what may be the hardest to admit: the truth about the market and about ourselves.

S&P 500 (SPY) Must hold 217 or could see 214.

Russell 2000 (IWM) 122.68 the 10 DMA today. 121 the ultimate support. A return back over 123.60 will help a lot

Dow (DIA) What is interesting is that once the Dow took out 18k, there was no terror. We also never tested it again. If cannot get back over 185.75 possible to see 182 then 180

Nasdaq (QQQ) 116 support to hold. I do see a potential double top this month.

XLF (Financials) 23.90 area is pivotal support. Held up well

KRE (Regional Banks) 42.00 big resistance and next point to clear. 40 key support but first 41.35

SMH (Semiconductors) Low volume reversal but did have more volume today than yesterday-so that’s something to consider

IYT (Transportation) Support 141.50-142.00

XRT (Retail) 45 support

ITB (US Home Construction) Inside day.

GLD (Gold Trust) Broke the range under 127.20 for an unconfirmed warning phase. Only metal we still have a tail in. Not discounting this just yet.

GDX (Gold Miners) 26.35 area next support

USO (US Oil Fund) 11.35 the weekly MA to clear-until then noise

XOP (Oil and Gas Exploration) Still like this with its inside day hammer doji.

TAN (Guggenheim Solar Energy) Unconfirmed return to bearish phase

TLT (iShares 20+ Year Treasuries) 138.90 the 50 DMA which it’s been above since June 1.

UUP (Dollar Bull) 24.54 resistance.

GREK (Greece) If gets through 7.50 time to pay attention