Let’s not forget that we are not even halfway through the Chinese Year of the Fire Rooster.

To refresh our memories, “Regarding the economy, the fire element is often the driving force behind the stock market.As such, fire years often generate optimism and drive up the stock market.” Raymond Lo.

Back on January 24th I wrote, “It seems that the most challenging part of trading in 2017 will be knowing when to focus on the details and when to look at the big picture.”

“In rooster terms that translates to knowing when to give serious attention to the market cuckolding and when to determine that the cuckolding is more talk than action.”

I took a photograph of our Fire Rooster incarcerated behind barbed wire. Why barbed wire?

Because the flamboyant rooster, when he opens his beak too much, gets himself and others nervous.

If he were within earshot of say, a crevice spiny lizard, that lizard would run for cover into the nearest crevice.

That’s how today began. The rooster cuckolded and the market fled into a hole.

Yet once the cuckolding stopped, some sectors of the market cautiously returned to bask in the sun.

Was the late day rally in the Russell 2000 enough to calm the market’s recent jitters and evoke an air of optimism?

Seems that “an air of optimism” is too, well optimistic.

Indeed, the Russell 2000 and his spouse Granny Retail closed green. XRT stopped short of its respective 50 day moving average.

IWM managed to finish above the fray and back into an unconfirmed bullish phase.

Regional Banks (KRE) also closed green. Although not enough to take it out of its warning phase.

Semiconductors began the session hiding in a hole. As her parents rallied, so did she. Instead of closing the session in an unconfirmed warning phase and under the 50 DMA, SMH managed to hang on to the bullish phase.

The Dow and the S&P 500, two indices that have enjoyed basking this year, both flitted all day between a rock and a hard place.

The Dow’s 50 DMA at 206.15 is key for tomorrow. In the SPY, that level is 234.75. For now, both cling for dear life to their bullish phases.

Apparently, with gold futures up nearly 1.75%, yields down 1% and the volatility or fear index up nearly 5%, the Rooster’s talk is beginning to engender action.

As the details become more obscure, the big picture turns foggier.

Is today’s sell-off like a rooster behind barbed wire? Who’s got the wire cutters?

S&P 500 (SPY) 234.64 the 50 DMA held on a closing basis. 237 a much better situation if clears

Russell 2000 (IWM) 133 important support to hold. Through 137 much better especially since will confirm a bullish phase if holds

Dow (DIA) 205.50-206 important 50 DMA support.

Nasdaq (QQQ) 130-132 now a range to watch

KRE (Regional Banks) 51.50 important support. 55.20 key area to get above

SMH (Semiconductors) 77.50 to hold, 80 must clear.

IYT (Transportation)162.50 key to hold with 166.65 the point to clear

IBB (Biotechnology) This must clear over 295 and hold 285.

XRT (Retail) 42.00 pivotal. 42.55 the 50 DMA

IYR (Real Estate) 79.00 the 200 DMA to hold. Looks better

GLD (Gold Trust) 120.10 the 200 DMA now that it is in an unconfirmed accumulation phase

SLV (Silver) Through 17.40 good

GDX (Gold Miners) 24.75 the 200 DMA

USO (US Oil Fund) What we want to see is a weekly close over 11.02

XOP (Oil & Gas Exploration) 37.40 should hold if good and 38 should clear

TAN (Solar Energy) 17.00-17.30 now the support to hold. Looks better

TLT (iShares 20+ Year Treasuries) 120 the new big support zone

UUP (Dollar Bull) 25.96-26.01 pivotal support