The Only Thing That Matters…
One of the challenges when analyzing charts is
deciding on what pattern you are seeing. Looking at charts is subjective. On the Nasdaq
(
$COMPQ |
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PowerRating) daily chart it looks like
three types of patterns are forming, one a Bull, a
Triple Bottom, and the other two being Bear patterns, a Descending Triangle
and an Island Reversal Top. Ultimately, you can see all the patterns you
want, but the only thing that matters is the price action. Is it going up or
down?Â
Today on the Nasdaq daily chart, the composite
has bounced off its support at 1740/1741. This does not give us a
clear sign of what pattern it is yet. The market internals are positive today
and the Advancers are leading the Decliners. After dropping five days straight,
the Nasdaq is holding on to a positive gain. At this point, if the Nasdaq drops
below its support of 1740, it may test the 1700 level. If it can put together a
rally above 1750, that could be sign of a further move to the upside. The
dynamics of the session are slightly positive with tech (wireless, telecom,
Internet) in positive territory.
The Dow
(
$INDU |
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PowerRating) is positive as well.
The DJIA is maintaining its level above the 200-day moving average. Some of the
positive sectors helping push the Dow are Airlines, Gold, and Drugs.
Triad Hospitals
(
TRI |
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PowerRating) gapped up at the
open and traded as high as 42.00. It has since pulled back and is trading at
41, up over $3.
Progress Energy
(
PGN |
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PowerRating) is breaking out
above its resistance level to all-time highs. PGN has increasing volume. With
this break out, it is important to have volume pushing the stock higher. With out
significant volume, we could see a pullback.
Ball Corp.
(
BLL |
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PowerRating) is pulling back to the
20-day moving average. BLL has a
3-month relative strength rank of 95 with an uptrending
ADX of 38 from TradingMarkets.com.
Barrick Gold
(
ABX |
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PowerRating)
is moving higher this morning and is attempting to take out its recent highs
established earlier this month at 19.50. Volume is increasing today and the fact
that the June gold contract (GCM2)
is positive today helps ABX. Barrick Gold has an uptrending
ADX of 22.
ITT Educational
Services
(
ESI |
Quote |
Chart |
News |
PowerRating) is moving higher this morning to establish an all-time
high. Volume is increasing to help this move to the upside. ESI has a
TradingMarkets.com RS3 rating of 94
and an uptrending
ADX of 25.
Express Scripts
(
ESRX |
Quote |
Chart |
News |
PowerRating)
is hitting 52-week highs after breaking out above 62.50. ESRX has a
TradingMarkets.com RS3 rating of 88 and an uptrending
ADX of 25.
Group 1 Automotive
(
GPI |
Quote |
Chart |
News |
PowerRating) is attempting to break out above the 45.00 resistance level.
GPI has a
TradingMarkets.com RS3 rating of 96 and an uptrending
ADX of 23.
In looking at the market for the afternoon trade,
I would like to see more strength roll into the Semis
(
$SOX.X |
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PowerRating).
Take a look at
Kevin Haggerty’s “Views From The Trading Desk.” If this would occur, I like
the bulls’ odds on the Nasdaq daily chart.