Limbo
The
SPX
(
$SPX.X |
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PowerRating) turned south after four tries at
the 1100-1108 resistance I said to expect on any break above the 1089 level. The
index is now back below all of its moving averages, and for those of you that
attended my California seminar, the 820 Trend Identification Method is negative
all five periods. The
(
SMH |
Quote |
Chart |
News |
PowerRating)s are also playing by the game plan after a 20%
rally into the 200-day EMA and the upper boundary of my proprietary bands, as
they closed at 42.10 after an intraday low of 41.68. The SPX failure also
coincided with the escalation of terrorist threats that unfortunately are not
going to go away and will have a continued negative affect on the US markets.
All of the sectors were
red yesterday with the exception of the
(
$UTY.X |
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Chart |
News |
PowerRating) and defense stocks,
along with spots of green in metals, gold, a few oils, and some health care,
like
(
THC |
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PowerRating),
(
HCA |
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PowerRating) and
(
HCR |
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PowerRating).
The SPX gave us two
defined short entries yesterday. After the intraday high of 1100 on the 9:40
a.m. bar, the SPX gave us a downside breakout from a descending triangle below
1094, which was also below all of the moving averages on your five-minute
intraday chart. The index traded down to an intraday low of 1079 with nothing
close to a stop out on the way down. If you missed that first entry, you got a
second chance from the Slim Jim between 1089-1086 from 11:00 a.m. to 2:30 p.m..
If you missed both, you are not watching the same charts I was.
NYSE volume was light at
1.179 billion, the volume ratio 30, and breadth -906. The SPX finished -1.1%,
the Dow
(
$INDU |
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PowerRating) -1.2%, and the NDX
(
$NDX.X |
Quote |
Chart |
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PowerRating) -2.8%. The Nasdaq
(
$COMPX |
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News |
PowerRating) also had below-average volume at 1.6 billion with a volume ratio
of just 19. It takes money to get the stocks up, but it just takes the Generals
to step away for them to decline.
As far as I am concerned,
the indices are nowhere right now. We anticipated and made our play from the key
inflection point zone on the indices, SMHs and
(
XLK |
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PowerRating)s, but now we are back
on the intraday charts until we see another opportunity. It is certainly not
prudent to be short into the Memorial Day weekend, and I will look to take
advantage of any intraday long setups on weakness going into the long weekend.
Stocks
Today
There aren’t many daily
chart setups, and I won’t play on the shortside unless it’s just in the proxies
short-term.
The longside setups are
(
LMT |
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PowerRating),
(
NOC |
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PowerRating),
(
RTN |
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PowerRating),
(
UNH |
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Chart |
News |
PowerRating),
(
APA |
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Chart |
News |
PowerRating),
(
PECS |
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Chart |
News |
PowerRating) and
(
SIAL |
Quote |
Chart |
News |
PowerRating).
Have a good trading day,
and for those of you taking the long weekend, enjoy yourselves.
Five-minute chart of
Tuesday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Tuesday’s NYSE TICKS