Box Resistance
(
TLAB |
Quote |
Chart |
News |
PowerRating)‘s
day was a much better performance by
the retail than
(
ORCL |
Quote |
Chart |
News |
PowerRating) was. The Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating) opened down 20 points, just below Wednesday’s 1657 low, then reversed
the low, and ran up to 1717 by 11:05 a.m. From there, the second trend of the
day took it down to 1662 — just so no one would get too over-confident. And
then we got the afternoon delight from 2:00 p.m. into the close, with the NDX
running up to a new intraday high of 1723, closing at 1721.56.
Unlike the NDX, the S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating) didn’t take out the previous day’s low, but couldn’t take out that
1226 number for the second time in succession. Looking at your five-minute
charts, you will see the three peaks at the 1226 level. You definitely want to
use 1226 as your upside pivot today, as the fourth time usually leads to a good
pop.Â
Maybe it gives us a run
right to the 1246 breakdown number and right into the 1250 – 1260 box of
resistance. For the SPX to avoid
dropping down to at least the 1170 – 1180 level, it must take out this box
resistance and then the 1286.62 swingpoint high — when every classical pattern
watcher will scream, “head-and-shoulder pattern failure!”
The volume picked up with
1.3 billion on the NYSE, but the volume ratio was only 54 while advancers led
decliners by +554. The Nasdaq’s volume ratio was also 54 with only +111
advancers over decliners. The volume ratios indicate less-than-a-unanimous
decision yesterday.
The NDX has its primary box
of resistance from 1768 to the 50-day EMA at 1837. If there is failure at this
zone, the NDX could very easily give us a flashdance down to the 1626 – 1504
zone. The six-month report card is June month end and the FOMC meeting the 26th
and 27th. Unless the semis pick up again, I don’t think the Generals can hold
the line through month end.
Yesterday, two of our three
components that I expect to lead us to any sustained move had good days — the
biotechs and financials. On the other hand, the semis looked awful but a little
green did show up late in the day, so there is some light for today. It’s
all about chips, curing diseases, and cheap money — not some union making
garments in East Osh Kosh.
Stocks
Today
In the semis:
(
NVLS |
Quote |
Chart |
News |
PowerRating),
(
KLAC |
Quote |
Chart |
News |
PowerRating) and
(
NVDA |
Quote |
Chart |
News |
PowerRating).
|
(September
|
||
|
Fair Value
|
Buy
|
Sell
|
|
8.20
|
 9.50  |
 7.15 Â
|
In the biotechs:
(
GENZ |
Quote |
Chart |
News |
PowerRating),
(
CHIR |
Quote |
Chart |
News |
PowerRating),
(
ABGX |
Quote |
Chart |
News |
PowerRating),
(
HGSI |
Quote |
Chart |
News |
PowerRating) and
(
MEDI |
Quote |
Chart |
News |
PowerRating).
In the financials:
(
PVN |
Quote |
Chart |
News |
PowerRating),
(
WFC |
Quote |
Chart |
News |
PowerRating),
(
COF |
Quote |
Chart |
News |
PowerRating),
(
MTG |
Quote |
Chart |
News |
PowerRating),
(
AIG |
Quote |
Chart |
News |
PowerRating),
(
CF |
Quote |
Chart |
News |
PowerRating) and
(
FITB |
Quote |
Chart |
News |
PowerRating).
Other stocks to focus on
are:
(
UNH |
Quote |
Chart |
News |
PowerRating),
(
FRX |
Quote |
Chart |
News |
PowerRating),
(
WPI |
Quote |
Chart |
News |
PowerRating),
(
GCI |
Quote |
Chart |
News |
PowerRating),
(
GD |
Quote |
Chart |
News |
PowerRating),
(
AGN |
Quote |
Chart |
News |
PowerRating),
(
VIAB |
Quote |
Chart |
News |
PowerRating),
(
AOL |
Quote |
Chart |
News |
PowerRating),
(
HDI |
Quote |
Chart |
News |
PowerRating),
(
AAPL |
Quote |
Chart |
News |
PowerRating),
(
NEWP |
Quote |
Chart |
News |
PowerRating),
(
SLR |
Quote |
Chart |
News |
PowerRating) and
(
SYMC |
Quote |
Chart |
News |
PowerRating).
Have a good trading day.
Wednesday’s S&P 500 five-minute chart
with 8-, 20-,
60- and 260-period
EMAs
Wednesday’s NYSE
TICK five-minute chart
Â