Market Recap for January 7th

Pretty much everything was down today. The only ETF's in my watchlist that were up were foreign currencies and LT Treasuries. The pullback shouldn't be a suprise, as we have quietly been puting together a 20%+ rally over the past month and a half. I think a good target for support in the Dow would be 8500.

Dow Jones Industrial Average

The foreign markets lead the US markets at times, so let's look at a couple to give us clues as to where we might go from here. The Chinese market (FXI) gapped lower today and it looks like it is headed towards support of $27.50. Action overseas tonight will dictate where this market is heading.

FTSE XNHUA (FXI)

An interesting market to look at is the Mexican market (EWW). This market has continued to make higher highs and higher lows. Last week it was able to catch support around the 23 day moving average (purple line). The decline stoped around this moving average today, so it will be interesting to see if the EWW bounces tomorrow. If it does, it could be seen as a leading indicator for the US markets.

MSCI Mexico Index (EWW)