Crazy Week
On
Friday, the SPX
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$SPX.X |
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1104-1112 by 10:25 a.m., then down to the intraday low of 1103 by 11:40. It then
trended up into the close at 1111, +0.7% on the day. The net result was a
narrow-range up inside day that accomplished nothing. The DJX closed flat at
10,191, +0.1%, while the NDX
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$NDX.X |
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continue its alternating up/down sequence, frustrating traders in all time
frames. If the Nasdaq Composite’s current pattern plays out, I can see a
projected drop of about 12% to the next zone, which could be the platform for a
good rally in tech. The confluence of numbers is 1543.9, 1542.2 and
1539.3 which is tight for the Nasdaq. That’s the current bear market index.
The bull market indices
are doing just fine. The
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IJR |
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closed Friday at 125.75 and projects up to 140.25 if the pattern completes. The
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MDY |
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trading range at the highs, looking ready to break out above the triple-top
pattern that has developed since September of 2000.
The other bull market
index, the Dow Jones, which didn’t even pull back to the .38 retracement level
to the September lows, has pulled back to the 200-day EMA in a flag pattern. It
closed at 101.91, that’s the
(
DIA |
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just looked at those three indices, your confidence would be at the top of the
range.
The SPX has been in a
choppy triangle for five-and-a-half months between 1074 and 1177 which indicates
the mix of tech stocks and value stocks in its composition. The point is the
media is all over the continuing tech saga, but there have been some excellent
uptrends in other parts of the market. This is a big earnings hype week with
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INTC |
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MSFT |
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C |
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charts.
Stocks
Today
Daily chart setups:
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ESRX |
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NVLS |
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AMAT |
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LTXX |
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LIZ |
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SYMC |
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GILD |
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WFC |
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FITB |
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BNI |
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On the shortside, stay
with the proxies. It’s a crazy week with this kind of earnings week
coming.Â
Have a good trading day.
Five-minute chart of
Friday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Friday’s NYSE TICKS
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