One Thing In The Market Holds True
What Tuesday’s Action Tells
You
The first two days of this week’s time zone
have
been up, and the
(
SMH |
Quote |
Chart |
News |
PowerRating) and
(
INTC |
Quote |
Chart |
News |
PowerRating) have yet to make continuation
moves,
and in fact, had a good day yesterday with INTC +2.7% to 23.24 and the SMH
+2.4%
to 33.35, so that is a positive for the major indices.
All of the major indices finished green, with
the
SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating), 1203.39, and the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating), 10,677, both +0.4%,
while the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating), 2160, and
(
QQQQ |
Quote |
Chart |
News |
PowerRating), 40.48, were both
+0.5%.
NYSE volume was 1.54 billion shares, volume ratio 65 and breadth +800. The 4
MA
of the volume ratio is now back to 61 and the 4 MA of breadth +674 and the
five-day RSI is 76 after four straight up days on a re-cross of the 20-day
EMA.
The primary sectors were led by the SMH,
+2.4%,
and the
(
OIH |
Quote |
Chart |
News |
PowerRating), +1.9%, continued its four-day rally off the 89-day EMA.
The
SMH gapped open, trading from Monday’s high on the first bar, so it was not
a
good trader’s entry. The OIH also gapped with no significant retracement or
gap
pullback, so it was a nice price move without good opportunity for traders
to
hitch a ride from one of the strategies. That is the way it goes sometimes.
The
(
BBH |
Quote |
Chart |
News |
PowerRating), -0.2%, and XAU, -0.6%, were the only sectors to finish
red.
After all of the subjective dialogue by the
media, commentators and the many different reports and news that affect the
markets on a daily basis, the only thing that always holds true is the
symmetry
of the market. Those of you who follow my core framework should check the
(
DIA |
Quote |
Chart |
News |
PowerRating)s 08/06 bottom, 09/07 top, 10/25 bottom and the 12/13 breakout from
the
21-day range. The information starts on page 80 of “Trading With the
Generals
IV” archive and manual.
Today’s
Action
The SPX, Dow, QQQQ and Nasdaq have all
closed at new rally highs, all up four days in succession, so it is not a
traders buy point and it is not a key price zone or at any resistance level.
The
bias is up into year-end, but you will see the major indices at lower prices
than yesterday’s close before the year-end mark-up.
The XBD, XLF, XLI and XLY have all made new
rally
highs with the major indices, but the sectors that have not are the XLB
(basics), BKX (banks) and XLK (technology). The RTH has retraced from its
102.07
rally high and is in a 10-day trading range at the 20-day EMA, having closed
at
98.09, so that becomes the focus today. Some retail stocks in good daily
chart
positions, along with the RTH, are
(
AEOS |
Quote |
Chart |
News |
PowerRating),
(
TGT |
Quote |
Chart |
News |
PowerRating),
(
URBN |
Quote |
Chart |
News |
PowerRating) and
(
JWN |
Quote |
Chart |
News |
PowerRating).
Have a good trading day,
Kevin Haggerty