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Record-Setting Dow Looks to Shake Off Weakness in World Markets

Scott Redler

S&P futures are currently off about two handles after the second day of red arrows in world markets. China is off about 1% while Japan is currently off 0.61%. European indices are also down a bit. Yesterday the S&P saw its seven day win streak come to an end, but losses were marginal.

Headlines are talking about the Dow's eight-day win streak, which is the longest streak we've seen over the last 16 years, even if some of those up days this year , like yesterday's one point gain, are very small. All in all, the market still acts well, even if sometimes it feels lethargic and hard to trust.

The new upper range in the S&P stands with micro support around $1547ish and the 8-day moving average around $1542. The longer we hold above this new level the greater the probability the composure of the markets remains the same. Pivot resistance is now $1556.

Today the market will get to evaluate retail sales. Recently there's been some nice action in retail stocks like Target (TGT), Wal-Mart (WMT), and Costco (COST).

Tech continues to be a mixed bag.

Some of the leading momentum names let the 8- and 21-day moving averages play catch-up and it will be interesting to see if they can get going again.

Google (GOOG) touched its 8-day MA and held. New pivot support is $823.67.

LinkedIn (LNKD) touched and bounced off its 8-day MA with new pivot support at $173.61.

Netflix (NFLX) is hovering in between its 8- and 21-day and could make a bigger move soon. If it gets below $176 and it could get pressured. Above $186.ish and it could get some upside momentum.

Amazon (AMZN) tried to go yesterday and ran out of steam. Support stands at $270ish and resistance is $275ish.

Western Digital (WDC) and Seagate (STX) had big days yesterday with WDC at highs of the year.

Broadcom (BRCM) ignited yesterday and at some point could contend with the $35.50 level.

Sprint (NYSE:S) has a tight pattern and has been that way for some time. I'm not sure what catalyst it's looking for, but a move above $5.96-$6 on heavy volume could open the door to higher prices.

Apple (AAPL) stock got hit yesterday as it had no follow through to Monday's upside. Support now stands at $425 then $419. A close under this and $400 could be a magnet. Resistance is at $433 then $439.

Facebook (FB) hangs in but has no upside momentum. Support now is $37.30 and resistance is $38.65.

Boeing (BA) had more good news. This stock met our 2013 expectations in a two-week move from $77-85. After the recent rally, here is probably a better spot to trim longs rather than start a fresh position.

Most others sectors are also hanging around with selective action.

In today's Morning Call I will go over four set ups that look good for higher prices, and four set ups that look like shorts. We are getting some two way action in this market.

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DISCLOSURES: Scott Redler is long S, FB, BAC, WMT, GDX, F and short SPY.