Awareness Level
There
was early acceleration through 930 yesterday on the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating), then
a quick reflex to 929, and then trend down all day with three quick contra moves
from the 915 level, which is the top of the original ascending triangle
breakout. The best contra entry pattern was the RST entry after the 913.21
intraday low. The signal bar was the 3:15 p.m. ET bar on your five-minute chart,
and entry was on the 3:20 p.m. bar above the signal bar’s high of 914.44. The
trade ran to 922 before backing off to close at 920. As
mentioned yesterday, this was a zone of some confluence.
For today, we are looking
at the .382 retracement from 965 – 776 of 893 and confluence with the
head-and-shoulders measurement to 895. The previous triangle breakout support is
910 – 915. On the upside, we are looking first at the .236 retracement of 920
and the 20-day EMA of 922.34. And of course, we now have the 930
head-and-shoulders neck resistance.
NYSE volume was slightly
below the previous day at 1.1 billion, which is about 20% below its average, a
volume ratio of just 16, and breadth negative at -1084. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating)
declined -1.5%, the SPX -1.8%, the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) -2.5%, and the NDX 100
(
$NDX.X |
Quote |
Chart |
News |
PowerRating) -3.0%.
All sectors were red
yesterday, led by the techs with the SOX
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) -4.1%, following a
-5.9% day. The SOX is down 17% over the past five days, so I will certainly be
scrolling intraday charts for any short-covering bounce.
Down below on the SPX,
you have the .50 retracement at 870 and the .618 retracement of 848. I look at
these last two days as sitting around looking for a couple of overreactions in
the index proxies or setups from the awareness levels and maybe some oversold
action in the semis.
Have a great day and a
great weekend. If there’s nothing to say tomorrow, I won’t say it, Yogi.
Five-minute chart of
Wednesday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Wednesday’s NYSE TICKS