Hello All,

The major indices are still down after a weak opening due to Turkey’s currency crisis.  As we noted, they were short-term overbought and ensnared in various resistance lines anyway.

This news provides a great and ready-made news item to justify selling stocks.  The implication?  There’s always a news-based reason for market action.  That’s not the case in our experience but we know how the game works and have to adapt to whatever comes our way.  The markets have withstood much negativity on their way to shrugging nearly everything off and for many years.  Will this episode be the one that triggers the big selloff many are waiting for?  We can’t say but some financials have gotten hit hard and other parts of the markets are down more than the .50% that the SPX is at present.  The SPX did find support near our 2nd level down and is holding thus far.  So, we’d expect no more harm until that level if violated.  That’s about 2825.00 but there’s another level just below it at 2813.00 as well and then other below there.  We’d be a little surprised if this Turkey news triggered a massive US stock market selloff but a quarter century of witnessing Wall St.’s brazen maneuverings has taught us to never rule out anything!

USB did get caught up in the selling and went just a little below our $52.80 support briefly before bouncing nicely.  Those that shoe horned their way into it would can move on, if they’d like, for a very small loss in front of the weekend, but more than likely, if they wanted to trade that badly, they may be content to hang in there and see if next week brings more rebound potential since USB has yet to close below said support.

MAR and HLT, the bears of the week, they’re still on the ropes but won’t fully give way.  Only time will tell on those and the Turkey Tantrum conclusively.

We’ll update when warranted.

Thanks!

Sincerely,

Wayne