Banditos Deliver Again
The
SMH Bandito gave us a gift once again, as
the
(
SMH |
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Chart |
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PowerRating)s opened down -6.6% at 21.50 vs. the 2.0 volatility band of 21.43.
It ticked down to 21.21 before taking off on a contra rally to a 22.25 high by
the 10:40 a.m. ET bar. From that intraday high, the SMHs resumed the direction
of the opening, trading back down to 21.21, closing at 21.40, -7.0% on the day.
The
(
SPY |
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PowerRating)s opened down -1.4%, then made an 88.82 low on the second bar after
an 89.05 opening. The contra move took the SPYs up to an intraday high of 90 on
the 10:50 a.m. bar. It was trend down from there to an 88.52 intraday low by
2:00 p.m., then rallied to close at 89.52 and also above the midpoint, but -0.9%
on the day. The SPX
(
$SPX.X |
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PowerRating) closed at 890.16, and you certainly
recognize that number. The volume in the SPYs dropped to 41 million, which is
the same as it was Oct. 14, the bank holiday.Â
NYSE volume was 1.5
billion, a volume ratio of just 31, and breadth -1119. All of the major sectors
finished red, led, as I mentioned, by the semis, with the XBD -3.5%. Gold popped
with the XAU +5.8%. The brokerage stocks like
(
GS |
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PowerRating) and
(
MER |
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PowerRating) were gapped
down hard on the opening, taking most of the downside vig out. The only bright
green from the S&P 500 stocks was in the communications stocks like
(
BLS |
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PowerRating), +7.7%,
(
VZ |
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PowerRating), +5.8%,
(
SBC |
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PowerRating), +4.9%, and out old friend Telephone
(
T |
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PowerRating), +3.8%. The semi equipment stocks took hits, with
(
KLAC |
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PowerRating) -10.3%,
(
AMAT |
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PowerRating) -6.7%, and
(
NVLS |
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PowerRating) -6.0%, while the day’s disaster was
(
TXN |
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PowerRating), -18%. The volatility in the semis is extreme, which is redundant, but
it’s intraday trader friendly.
The SPY closed at 89.52
on an inside day, so there was no change in direction, so basically nothing
done. The 20-day EMA at 85.94 and 50-day EMA of 87.52 have turned up, with the
three-day moving average of the low at 87.67. The confluence numbers in play for
the SPX if there is a continuation move above Monday’s high of 899.72 are 905 –
910, with two Natural Square numbers at 900. The .786 retracement to 965 is
923.Â
Have a good trading day.
Five-minute chart of
Tuesday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Tuesday’s NYSE TICKS