Look For Some Travel Range This Week–Here’s Why
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News on both Iraq and
some economic reports took the SPX
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1183 initial resistance zone, closing at 1181.26, +0.9%, with the Dow ,+0.6%, to
10,490. Both the Nasdaq
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+1.3%. The SPY
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initial resistance starting the day at 117.95 – 118.07.
NYSE volume was good at 1.68 billion shares, with
1.32 billion shares up and the volume ratio at 79. Breadth was also very
positive at +1810. The brokers led the sectors, with the XBD, +2.3%, riding the
M&A euphoria which is a strong positive if it continues by corporate America.
The OIH
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an early down as crude oil closed up at 48.20. There were excellent day trades
in Conoco
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and as always, the best daily chart patterns make the best day trades. The SMH
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didn’t really catch the train at just +0.4%.
Traders in the major index futures/proxies didn’t
get the travel range yesterday because of the gap openings and subsequent
sideways action. The SPY traded in less in than a 0.50 range, so you had to
concentrate on individual stock action, especially the intraday moves in the
energy stocks. The SPY 118.16 close reversed the previous seven closes with the
initial lower lines now 118.08 and 117.95, the 20- and 50-day EMAs. Since the
121.76, 1/3 high, the 20>50>200 sequence has remained intact with the maximum
high-low on a closing basis so far -4% over 17 days close-to-close and now a
+1.5% reflex up into the 118.16 close.
The futures are flat into new levels yesterday
but we should get some travel range both ways this week with the Federal Reserve
on Wednesday and the jobs dance on Friday.
Have a good trading day.
Kevin Haggerty
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