Energy, Semis In Focus.
What Thursday’s Action Tells
You
The major indices churned around some
resistance
following the four-day reflex from the price zones. The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed at 1091.23, -0.4%, as did the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) at 10,041. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) was -0.6%, and the
(
QQQ |
Quote |
Chart |
News |
PowerRating) -0.5%. NYSE August volume
continues
on the light side at 1.25 billion with the volume ratio at 43 and
breadth -361.
The only green sector action was the XAU,
+4.0%,
with
(
NEM |
Quote |
Chart |
News |
PowerRating) +4.2% on significant volume, and the
(
OIH |
Quote |
Chart |
News |
PowerRating) +1.1%
following
the previous day’s +1.7% gain as buyers came in around the OIH 200- and
233-day
EMA zones.
The travel range for the major indices was
small
yesterday, with the SPX backing-and-filling around its 200-day EMA, now
1092.90.
There was a small decline starting on the 2:05 p.m. ET bar that took the SPX
down to its 240 EMA and 233-day EMA, now 1086.73. The SPX hit 1086.28 and
rallied in the last hour to 1092, closing at 1091.23.
The QQQ had the same decline to its 240 EMA,
hitting 33.42, then a move to 33.75, closing at 33.67. The intraday high for
the
QQQ was 33.85, just below that 34 – 34.11 resistance outlined on yesterday’s
weekly chart. The 40-week EMA is above at 34.90, and both the 5-week and
15-week
are below the 40-week, so those of you familiar with the
seminar material
know
how to trade any “General’s Pullback” should the rally continue.
(Remember,
lowest common denominator.) The QQQ has a lot of wood to chop to get into
open
space. The 20-day EMA is 33.74 with the 50-day EMA at 34.64, 233-day EMA
34.73
and the 200-day and 40-week EMAs at 34.90 – 34.94.
Today’s
Action
The preference in this corner is to sell into
the
major index resistance I have outlined on any continuation of this four-day
rally. Yesterday was an opposite/pause telling us little. The energy
stocks attracted some volume along with price gains the past two days, so
they
are in focus, along with the semiconductors with the book-to-bill after
today’s
close.
The early futures are red at 8:00 a.m. with
the
S&Ps -3.70, Dow -28 and Nasdaq -6.50, so maybe along with the new oil
highs the
initial trades will be Trap Doors, but certainly look to the “90% – 60%
rule” to
come into play after that.
Have a good trading day and a great
weekend,
Kevin Haggerty