Bell Curve Day
We got
a bell curve day yesterday
with the rush up from 12:00 p.m. to 2:00 p.m., then the ski slope down into the
close. The
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) was nice enough to hit 533 and give you a reversal
bar for short entry in the
(
SMH |
Quote |
Chart |
News |
PowerRating)s. (See yesterday’s
text on the 530-540 resistance zone.) The short was from 42.5 to 42.25.
depending on your entry, and the SMHs then declined to 41.26 before closing at
41.5.
The NDX
(
$NDX.X |
Quote |
Chart |
News |
PowerRating)
finished flat at 0.1%, while the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) was -0.3% and the Dow
-0.4%. New York Stock Exchange volume expanded to 1.4 billion, which is about
20% above its average. The volume ratio declined to 43, while breadth was
neutral at +66.Â
Nothing significant
happened in the sectors except for the
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) which was +3.6% with many
top-of-the-range closes, while the
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) ended +2.9%. The
SPX and DJX both gave us narrow-range reversal bars and closes below the
midpoint. The SPX’s 89-day EMA is 1122.86 and yesterday’s high was 1126.62,
before closing at 1115.80. We are looking for a close below the low of the high
day — or if this early green in the futures continues, use the 89-day EMA as an
upside pivot. As I said yesterday,
you can’t know the high swingpoint day until it is confirmed with a close below
it, and then you have a good reward to risk after entry because your stop is in
such close proximity to your entry.Â
In the
(
MDY |
Quote |
Chart |
News |
PowerRating)s, look
to the 88-90 level for short entry from the intraday chart setups, or else wait
for a close below the low of the high day. There is three months of resistance
in addition to the 233-day EMA at the 89-90 level. The 144-day EMA level is 88.
Do the same exercise with the
(
IJR |
Quote |
Chart |
News |
PowerRating)s. The
(
DIA |
Quote |
Chart |
News |
PowerRating)s had a 96.44 high yesterday vs. the 89-day EMA at 96.80, then fell off
to close at 95.54. You can fade these resistance levels intraday if you get a
setup, but for a position trade, wait for the confirmed swingpoint close.
Stocks
Today
Daily chart setups (not a
lot of them, I just picked a few in the different areas that I haven’t been in):
(
MGYN |
Quote |
Chart |
News |
PowerRating),
(
CTAS |
Quote |
Chart |
News |
PowerRating),
(
CAT |
Quote |
Chart |
News |
PowerRating) and
(
DOW |
Quote |
Chart |
News |
PowerRating).Â
Also
(
LEH |
Quote |
Chart |
News |
PowerRating),
(
FRE |
Quote |
Chart |
News |
PowerRating),
(
EBAY |
Quote |
Chart |
News |
PowerRating),
(
BEAS |
Quote |
Chart |
News |
PowerRating),
(
BRCD |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating),
(
ORCL |
Quote |
Chart |
News |
PowerRating),
(
EMC |
Quote |
Chart |
News |
PowerRating) and
(
BKS |
Quote |
Chart |
News |
PowerRating).
In the oil services,
(
BHI |
Quote |
Chart |
News |
PowerRating),
(
SLB |
Quote |
Chart |
News |
PowerRating),
(
NE |
Quote |
Chart |
News |
PowerRating) and
(
RDC |
Quote |
Chart |
News |
PowerRating).
In the biotechs,
(
DNA |
Quote |
Chart |
News |
PowerRating)
and
(
ICLS |
Quote |
Chart |
News |
PowerRating).
Have a good trading day.
Five-minute chart of
Wednesday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Wednesday’s NYSE TICKS
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