Narrow Range To Resolve Quickly
Yesterday
was the narrowest range of the year for
the SPX
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$SPX.X |
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PowerRating), with an intraday high of 1157.83 and low of 1151.08. It
closed virtually unchanged at 1153.04. NYSE volume was the lowest of the past
five days at 1.2 billion, so we have declining prices on reduced volume which is
very often a positive. The volume ratio was 44, and breadth positive at +360.
The Nasdaq closed at 1854.13, -0.4%, and now has a string of four minus days on
reduced volume. The volume for the
(
SPY |
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(
DIA |
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than the
(
QQQ |
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$NDX.X |
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PowerRating) closed at 1477.19, -0.6%. The Nasdaq breadth was still positive
at +398, with the volume ratio at 38. Implied volatility for the QQQs is bumping
at 52-week lows, presenting interesting options strategies to play, while the
VIX is still hugging the lows.
I thought there would be
more activity yesterday and today would be a grind. That narrow range will be
resolved quickly. Looking at how the SPX finished yesterday, I see there is a
head-and-shoulder triple bottom at 1151 on your five-minute chart, with the
200-day EMA at 1156.10 on your daily chart. I would imagine that the futures
will try to play with the 1151 neckline, suck some shorts in, but you should be
ready to play a reversal of that low to the upside.
The
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$SOX.X |
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flat yesterday, although several semis closed green, so after the four-day
decline, the finger is on the trigger for intraday long setups in some key
semis.
Stocks
Today
Setups on the daily
chart: In the semis, look at
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KLAC |
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(
MXIM |
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PowerRating) and
(
BRKS |
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pullbacks to the 20-day EMA, while
(
NVDA |
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(
ADI |
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200-day EMAs, so you have some pivots to work off of. Also look at
(
NSM |
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PowerRating),
which is a 1-2-3-4 pullback.
Other stocks to focus on:
(
APOL |
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PowerRating),
(
FITB |
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(
C |
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PowerRating),
(
STT |
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PowerRating),
(
THQI |
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PowerRating),
(
SLB |
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PowerRating),
(
WLP |
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PowerRating),
(
BNI |
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PowerRating),
(
NUE |
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PowerRating),
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UTX |
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PowerRating),
(
VARI |
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PowerRating),
(
CEPH |
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PowerRating),
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WY |
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PowerRating) and
(
ATK |
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PowerRating).
If something happens
negative, which I don’t think will happen too big negative, keep your hand on
those index SPDRs. Â
My next text will be on
Tuesday. As some of you know, Sunday is St. Patrick’s Day. I have places to go,
people to see, so I’ll be back in the saddle again on Tuesday.
Have a good trading day
and have a great holiday.
Five-minute chart of
Thursday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Thursday’s NYSE TICKS
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Additional
Below are the tools that Kevin uses on the TradingMarkets
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