We missed the FED rate cut by ½ of a day, not too bad. So far futures are responding nicely to the news. We only wish it would have come earlier. Don’t be surprised if the FED cuts again when they meet again in a couple of weeks. Next up is another bailout, one for homeowners. Until housing prices firm up, unfreezing credit and lower interest rates will be swimming upstream.

As we started our weekly routine of screening industry charts, we almost stopped halfway through and thought, “What’s the point?” Chart after chart looks miserable and the few that are on the upswing are sooooo extended on the upside. But there were a few charts were showing signs of life.

Clearly there is move to safety by the big money. The only style chart that looked “good” is US Large Cap Value Stocks. So it was no surprise to see the following industries will bullish formations:

Defense Stocks
Fixed Telecom Stocks
Pharmaceutical Stocks
Food & Beverage Stocks
Tobacco Stocks

These are obviously the items people will not give up buying no matter how bad things get.

With the market crashing day-after-day, we thought it would be important to update our readers on the technical outlook for the major indexes.

For the S&P 500, it is a support level right now. If it falters then the next level of support is around 940, followed by 875 and then 800.
The NASDAQ is another that must make a stand right now or we will visit 1500 and then 1250.
The DOW makes it 3-for-3 on indexes standing on a fault line. Next up would be 8900 and then 7500 the 7000. After that it would be bombs away.