Fear and panic = buying opportunity?
The market’s volatile up and down moves last week have left the overall trend picture still negative, but with fewer actual identifiable trends. This represents more neutral and “noisy” price action, with the possibility of swings in both directions.
The sentiment picture has improved further, with signs of at least some fear and panic during the down swings. Overall it seems reasonable to expect that further downside action is likely, but at the same time reasonable to question if this will occur when so many market participants are expecting it or fearful of it. So the answer to this post’s headline is a definite “maybe.” 
Key near-term downside support is now at about 1430 and 1450-1460 (where it’s at now) for the S&P 500; 840-845 (where it’s at now) and 815-820 for the Russell 3000; 2500-2510 and 2470-2475 for the Nasdaq; and 13,200-13,300 (where it’s at now), 12,800, and 12,500-12,600 for the DJIA. Overhead resistance is now about 1450-1460 (where it’s at now), 1470-1475, and 1490-1500 for the S&P 500; 840-845 (where it’s at now) and 855-860 for the Russell 3000; 2580-2590 and 2620 for the Nasdaq; and 13,200-13,300 (where it’s at now), 13,450-13,500, and 13,700 for the DJIA.
New positions
No new positions this week.
Watchlists
Stocks of interest showing up on this week’s “upside strength” scans include Coca Cola (KO), Cypress Semiconductor (CY), Fastenal (FAST), Harsco (HSC), Kellogg (K), Park Electrochemical (PKE), PepsiCo (PEP), Procter & Gamble (PG), Scotts Miracle-Gro (SMG), Semitool (SMTL), St. Jude Medical (STJ), Stryker (SYK), Walgreen (WAG), Whole Foods Market (WFMI)*, and William Wrigley Jr. (WWY).
New candidates of interest on the “oversold” scans include Acxiom Corp. (ACXM), Alcoa (AA)*, Alberto Culver (ACV), Allied Waste (AW), American Axle & Manufacturing Holdings (AXL), American Greeting (AM), Arrow Electronics (ARW), Barnes & Noble (BKS), Campbell Soup (CPB), CBS Corp. (CBS), Commercial Metals Co. (CMC), Dycom Industries (DY), General Dynamics (GD), Heinz (HNZ), J. M. Smucker (SJM), Koninklijke Philips Electronics (PHG), Korn/Ferry International (KFY), Kraft (KFT), Lockheed Martin (LMT), Molson Coors (TAP), Norfolk Southern (NSC), Olin Corp. (OLN), OM Group (OMG), ONEOK (OKE), Protective Life (PL), Sanderson Farms (SAFM), ViaSat (VSAT), Waste Management (WMI), and Wyeth (WYE).
* I currently own and/or have an options position on this stock.
