{"id":31149,"date":"2015-10-14T23:22:50","date_gmt":"2015-10-15T06:22:50","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=31149"},"modified":"2015-10-15T00:50:03","modified_gmt":"2015-10-15T07:50:03","slug":"t2108-update-151014","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2015\/10\/14\/t2108-update-151014\/","title":{"rendered":"T2108 Update (October 14, 2015) &#8211; Retail Fails the Test As the S&#038;P 500 Mildly Stares At Its Own"},"content":{"rendered":"<p><code><\/code>(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my <a href=\"http:\/\/www.drduru.com\/money\/T2108.htm\">T2108 Resource Page<\/a>. You can <a href=\"http:\/\/twitter.com\/#!\/search\/%23T2108\">follow real-time T2108 commentary<\/a> on twitter using the #T2108 hashtag. T2108-related trades and other trades are occasionally posted on twitter using <a href=\"http:\/\/twitter.com\/#!\/search\/%23120trade\" target=\"_blank\">the #120trade hashtag<\/a>. T2107 measures the percentage of stocks trading above their respective 200DMAs)<\/p>\n<p><strong>T2108 Status<\/strong>: 57.6%<br \/>\n<strong>T2107 Status<\/strong>: 26.2%<br \/>\n<strong>VIX Status<\/strong>: 18.0<br \/>\n<strong>General (Short-term) Trading Call<\/strong>: Neutral (target of 1996 on the S&#038;P 500 occurred ahead of overbought conditions. See &#8220;<a href=\"http:\/\/drduru.com\/onetwentytwo\/2015\/09\/18\/t2108-update-150918\/\" target=\"_blank\">From the Edge of A Breakout to the Ledge of A Breakdown<\/a>&#8221; for more details).<br \/>\n<strong>Active T2108 periods<\/strong>: Day #9 over 20%, Day #8 over 30%, Day #8 over 40%, Day #6 over 50% (overperiod), Day #2 under 60%, Day #323 under 70%<\/p>\n<p><strong>Reference Charts<\/strong> (click for view of last 6 months from Stockcharts.com):<br \/>\n<a title=\"6-month chart of the S&amp;P 500\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$SPX&amp;p=D&amp;st=2015-04-14&amp;en=2015-10-14&amp;id=p14085208538\" target=\"_blank\">S&amp;P 500<\/a> or <a title=\"6-month chart of SPY\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SPY&amp;p=D&amp;st=2015-04-14&amp;en=2015-10-14&amp;id=p14085208538\" target=\"_blank\">SPY<\/a><br \/>\n<a title=\"6-month chart of SDS\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=SDS&amp;p=D&amp;st=2015-04-14&amp;en=2015-10-14&amp;id=p15880085697\" target=\"_blank\">SDS<\/a> (ProShares UltraShort S&amp;P500)<br \/>\n<a title=\"6-month chart of the U.S. dollar\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$USD&amp;p=D&amp;st=2015-04-14&amp;en=2015-10-14&amp;id=p25615696567\" target=\"_blank\">U.S. Dollar Index<\/a> (volatility index)<br \/>\n<a title=\"6-month chart of EEM\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=EEM&amp;p=D&amp;st=2015-04-14&amp;en=2015-10-14&amp;id=p15880085697\" target=\"_blank\">EEM<\/a> (iShares MSCI Emerging Markets)<br \/>\n<a title=\"6-month chart of the VIX\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=$VIX&amp;p=D&amp;st=2015-04-14&amp;en=2015-10-14&amp;id=p25615696567\" target=\"_blank\">VIX<\/a> (volatility index)<br \/>\n<a title=\"6-month chart of VXX\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=VXX&amp;p=D&amp;st=2015-04-14&amp;en=2015-10-14&amp;id=p15880085697\" target=\"_blank\">VXX<\/a> (iPath S&amp;P 500 VIX Short-Term Futures ETN)<br \/>\n<a title=\"6-month chart of EWG\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=EWG&amp;p=D&amp;st=2015-04-14&amp;en=2015-10-14&amp;id=p15880085697\" target=\"_blank\">EWG<\/a> (iShares MSCI Germany Index Fund)<br \/>\n<a title=\"6-month chart of CAT\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=CAT&amp;p=D&amp;st=2015-04-14&amp;en=2015-10-14&amp;id=p15880085697\" target=\"_blank\">CAT<\/a> (Caterpillar).<br \/>\n<a title=\"6-month chart of IBB\" href=\"http:\/\/stockcharts.com\/h-sc\/ui?s=IBB&amp;p=D&amp;st=2015-04-14&amp;en=2015-10-14&amp;id=p15880085697\" target=\"_blank\">IBB<\/a> (iShares Nasdaq Biotechnology).<\/p>\n<p><strong>Commentary<\/strong><br \/>\nT2108 faded further away from overbought conditions. The third pullback in a row accompanied the S&#038;P 500 (SPY) down to an early test of the 50DMA as support.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31150\" aria-describedby=\"caption-attachment-31150\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_SP500.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_SP500.png\" alt=\"The S&amp;P 500 (SPY) has drifted back to its 50DMA\" width=\"550\" height=\"375\" class=\"size-full wp-image-31150\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_SP500.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_SP500-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31150\" class=\"wp-caption-text\">The S&#038;P 500 (SPY) has drifted back to its 50DMA<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>While the 50DMA test looks mild, it is important. The S&#038;P 500 topped out at the September intraday high and thus has yet to completely heal from the oversold periods that began in <a href=\"http:\/\/drduru.com\/onetwentytwo\/2015\/08\/25\/t2108-update-150824\/\" target=\"_blank\">the August angst<\/a>. A breakdown here opens the potential for yet another trip to oversold conditions. A successful test would setup a run-up to 200DMA resistance which SHOULD finally create overbought conditions. It could be a very close call&#8230;like the Pittsburgh Steelers going for the win instead of the tie against the San Diego Chargers on Monday Night Football and getting rewarded as <a href=\"http:\/\/www.nfl.com\/videos\/nfl-cant-miss-plays\/0ap3000000556007\/Can-t-Miss-Play-Saved-by-the-Bell\" target=\"_blank\">running back Le&#8217;Veon Bell stretches at the final tick of the game for the winning touchdown<\/a>.<\/p>\n<p>It was a day of earnings news that featured at least two stark contrasts. Intel (INTC) dropped as much as 3.7% in the morning, and I began contemplating my first post-earnings buy perhaps around a 50DMA test. Before I could think a second thought, INTC jumped back up to a 1.5% gain on its way to a remarkable +2.4% gain. Suddenly, INTC has successfully defended the 200DMA as support and looks ready to resume its breakout.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31151\" aria-describedby=\"caption-attachment-31151\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_INTC.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_INTC.png\" alt=\"Intel (INTC) bounces back aggressively after initial post-earnings selling.\" width=\"550\" height=\"375\" class=\"size-full wp-image-31151\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_INTC.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_INTC-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31151\" class=\"wp-caption-text\">Intel (INTC) bounces back aggressively after initial post-earnings selling.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>There was no bounceback for Wal-Mart (WMT). WMT shocked the market with a deep earnings warning that sent the stock cratering to a 10.0% loss on the day. The daily chart below is a great example of the importance of respecting trends. Clearly, there were lots of sellers eager to get out of the way of just such a moment on WMT.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31152\" aria-describedby=\"caption-attachment-31152\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_WMT.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_WMT.png\" alt=\"Wal-Mart plunged to its biggest 1-day loss in 27 years\" width=\"550\" height=\"375\" class=\"size-full wp-image-31152\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_WMT.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_WMT-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31152\" class=\"wp-caption-text\">Wal-Mart plunged to its biggest 1-day loss in 27 years<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>WMT now trades at prices last seen in mid-2012. The prospect of further selling as the market prices in the poor outlook confirms the end of WMT&#8217;s big breakout in 2012. There is even the real possibility that WMT will return to a trading range that was in place from 1999 to 2012.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31159\" aria-describedby=\"caption-attachment-31159\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_WMT-monthly.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_WMT-monthly.png\" alt=\"The breakout for Wal-Mart has definitely ended. Time to resume the previous trading range that began in 1999?!?\" width=\"550\" height=\"375\" class=\"size-full wp-image-31159\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_WMT-monthly.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_WMT-monthly-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31159\" class=\"wp-caption-text\">The breakout for Wal-Mart has definitely ended. Time to resume the previous trading range that began in 1999?!?<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Even though WMT&#8217;s news sounded very company-specific, I was still surprised that there was no general market malaise. After all, if WMT cannot make good money when gas prices are at rock-bottom prices and unemployment is just about as low as it will go, who can? And what happens when these tailwinds for the consumer start to fade? For now, it seems these are not concerns for the general market.<\/p>\n<p>SPDR S&#038;P Retail ETF (XRT) DID feel the impact and was a relatively poor performer on the day with a 1.0% loss. It is an ominous confirmation of the 50DMA as resistance. Traders must closely watch this development.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31154\" aria-describedby=\"caption-attachment-31154\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_XRT.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_XRT.png\" alt=\"SPDR S&amp;P Retail ETF (XRT) has been guided downward by its 50DMA since August\" width=\"550\" height=\"375\" class=\"size-full wp-image-31154\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_XRT.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_XRT-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31154\" class=\"wp-caption-text\">SPDR S&#038;P Retail ETF (XRT) has been guided downward by its 50DMA since August<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>Addendum: I almost forgot to point out a potentially huge breakout for SPDR Gold Shares (GLD)!<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31167\" aria-describedby=\"caption-attachment-31167\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_GLD.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_GLD.png\" alt=\"SPDR Gold Shares (GLD) is making its first move over the downtrending 200DMA since May.\" width=\"550\" height=\"375\" class=\"size-full wp-image-31167\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_GLD.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/10\/151014_GLD-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31167\" class=\"wp-caption-text\">SPDR Gold Shares (GLD) is making its first move over the downtrending 200DMA since May.<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p><center><br \/>\n<strong>Daily T2108 vs the S&amp;P 500<\/strong><br \/>\n<img loading=\"lazy\" decoding=\"async\" title=\"T2108 vs. the S&amp;P 500 (DAILY)\" src=\"http:\/\/www.drduru.com\/money\/charts\/T2108-daily_s.png\" alt=\"\" width=\"500\" height=\"350\" \/><\/p>\n<p>Black line: T2108 (measured on the right); Green line: S&amp;P 500 (for comparative purposes)<br \/>\nRed line: T2108 Overbought (70%); Blue line: T2108 Oversold (20%)<br \/>\n<\/center><\/p>\n<p><center><br \/>\n<strong>Weekly T2108<\/strong><br \/>\n<a href=\"http:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\"><img loading=\"lazy\" decoding=\"async\" title=\"Weekly T2108\" src=\"http:\/\/www.drduru.com\/money\/charts\/T2108-weekly_s.png\" alt=\"Weekly T2108\" width=\"500\" height=\"350\" \/><br \/>\n*<strong>All charts created using <\/strong><\/a><strong><a title=\"Freestockcharts.com\" href=\"http:\/\/www.freestockcharts.com\/\" target=\"_blank\">freestockcharts.com<\/a><\/strong> unless otherwise stated<\/center><\/p>\n<p>The charts above are the my LATEST updates independent of the date of this given T2108 post. For my latest T2108 post <a href=\"http:\/\/drduru.com\/onetwentytwo\/tag\/t2108\/\" target=\"_blank\">click here<\/a>.<\/p>\n<p>\n<strong>Related links:<\/strong><br \/>\n<a href=\"http:\/\/www.drduru.com\/money\/T2108.htm\">The T2108 Resource Page<\/a><br \/>\n<a href=\"http:\/\/www.drduru.com\/money\/charts\/T2108-daily.jpg\">Expanded daily chart of T2108 versus the S&amp;P 500<\/a><br \/>\n<a href=\"http:\/\/www.drduru.com\/money\/charts\/T2108-weekly.jpg\">Expanded weekly chart of T2108 <\/a><\/p>\n<p>Be careful out there!<\/p>\n<p>Full disclosure: long GLD<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are &#8230; <a title=\"T2108 Update (October 14, 2015) &#8211; Retail Fails the Test As the S&#038;P 500 Mildly Stares At Its Own\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2015\/10\/14\/t2108-update-151014\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[199,338,796],"tags":[200,24,222,65,226,1597,1177,282],"class_list":["post-31149","post","type-post","status-publish","format-standard","hentry","category-commodities","category-retail","category-semiconductors","tag-gld","tag-gold","tag-intc","tag-sp-500","tag-t2108","tag-technical-analysis","tag-wmt","tag-xrt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>T2108 Update (October 14, 2015) - Retail Fails the Test As the S&amp;P 500 Mildly Stares At Its Own - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2015\/10\/14\/t2108-update-151014\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T2108 Update (October 14, 2015) - Retail Fails the Test As the S&amp;P 500 Mildly Stares At Its Own - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are ... 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