Machines Are Following the TA Playbook

This early morning selloff from the highs is not a negative for the bulls. In fact, traders are playing out the chart on the SPDR Trust (SPY) that I posted earlier on Columnist Conversation. This is very similar to the Russell 2000 iShares (IWM) action yesterday.

The machines may be in charge, but they are being technical for now. As long as the SPY holds $116.50, then the setup favors being bullish. Below there, we could see a retest of $115.50, which is where I would have some conditional stops. The other caveat is gold. You have to have it on your screen right now. Love it or hate it, that is the "correlation of the month" right now. The market correlations have become like a Baskin Robbins, with rotating correlations each month, from euro to dollar to oil to gold, but at least it is something, like it or not....387 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.