Argentina default rattles global markets

Index & Sector performance 7/31/14

The Market:

A sea of red today on the WSC Scoreboard with all 4 major indices closing strongly lower led by the Russell 2000 (IWM).  Major media outlets pointed to weakness overnight in International markets caused by Argentina’s default.

Looking at the technicals, the S&P 500 (SPY) and the Dow (DIA) both clearly lost their 50 day moving averages on a closing basis and did so on an increase in volume.  The NASDAQ (QQQ), which has been this year’s strongest performer, is still a few percent above the 50’s while the Russell 2000 (IWM) has been a clear underperformer and is now below its 200 day SMA.

After a sell off this strong it would not be surprising for the indices to find some support for a short term bounce soon but we will be very suspect of that bounce until it clearly proves itself as more than a relief rally.  We see there is a gap on the SPY at $190.35 and the 20 day SMA is roughly $186 so we think traders can be patient.

Economic Calendar week of 7/28/14

Reporting EPS 8/1/14 Pre-Market:

Companies reporting EPS 8/1/14 pre-market

Analyst Comments:

Upgrades 7/31/14

Downgrades 7/31/14

Initiations 7/31/14

The list of the Price Target Changes is very long so below is a partial screen shot and then HERE is the link to the full list.

Price Target Changes 7/31/14