The Other Market
The
early rally couldn’t make it past 1:00 p.m., as
the afternoon was strong trend down. The
(
SPY |
Quote |
Chart |
News |
PowerRating) and
(
DIA |
Quote |
Chart |
News |
PowerRating) had each gained
about 1 point in the morning pop, but lost that, and then some, in the
afternoon decline. At 6:30 a.m. this morning as I am doing this, the S&Ps
are down 7, the NDX -13, and the Dow -59, as the TV suits are mumbling about Saudi
Arabia playing the oil card and Nick Hastings on CNBC, who still thinks America
is a British colony, is forecasting doom for the dollar. FYI: His doomsday dollar
forecast hasn’t changed since he started in the business.
NYSE volume was about the
same as the previous day at 1.3 billion shares, a volume ratio of 41, and
breadth -122. In the tech world where the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) declined 1.0%
and the NDX 100
(
$NDX.X |
Quote |
Chart |
News |
PowerRating) 1.5%, both on lighter volume, there was a
definite improvement in the volume ratios. The NDX volume ratio improved to 38
from 22 and the Nasdaq at 40 vs. 22.
In the sectors, the
brokers got whacked, with the
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) -3.4% under the broadening analyst
probe. The semis provided some morning trades, like
(
NVLS |
Quote |
Chart |
News |
PowerRating), but went down
hard in the afternoon, with the
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) finishing -3.8% and -13.5% in
five days. The
(
QQQ |
Quote |
Chart |
News |
PowerRating)s made a continuation low close yesterday and that puts
its current pattern on a path to the .786 level which is 30.63, or 29, where leg
“A-B” will equal “C-D.” See your daily chart.
Reread my April
15 text as I gave you the Nasdaq Composite’s projected levels if the pattern
plays out. For the Nasdaq’s pattern to be in play, it must close below 1696.55.
Also, a trading-range breakdown for the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) measures down to 971
vs. the .786 retracement to the 945 September low, which is 995. There will be a
reflex rally before those patterns have a chance to play out.Â
In spite of the major
index drag, we had good trades yesterday in
(
DGX |
Quote |
Chart |
News |
PowerRating),
(
AZO |
Quote |
Chart |
News |
PowerRating),
(
CBH |
Quote |
Chart |
News |
PowerRating),
(
EMMS |
Quote |
Chart |
News |
PowerRating) and
(
ATK |
Quote |
Chart |
News |
PowerRating), and to a lesser extent,
(
ESL |
Quote |
Chart |
News |
PowerRating), so there is
another world out there, folks.
Stocks
Today
There was absolutely no
buying pressure in the NDX yesterday, with only three stocks closing in the top
25% of their range. The semis got even more oversold, so continue that focus
watch today for reflex setups in yesterday’s
semi list.Â
Other stocks:
(
USAI |
Quote |
Chart |
News |
PowerRating),
(
DGX |
Quote |
Chart |
News |
PowerRating),
(
STJ |
Quote |
Chart |
News |
PowerRating),
(
CBH |
Quote |
Chart |
News |
PowerRating),
(
AZO |
Quote |
Chart |
News |
PowerRating),
(
ATK |
Quote |
Chart |
News |
PowerRating),
(
ESL |
Quote |
Chart |
News |
PowerRating)
above Tuesday’s high,
(
FITB |
Quote |
Chart |
News |
PowerRating),
(
EMMS |
Quote |
Chart |
News |
PowerRating),
(
ITT |
Quote |
Chart |
News |
PowerRating),
(
MCO |
Quote |
Chart |
News |
PowerRating),
(
CYMI |
Quote |
Chart |
News |
PowerRating) and
(
PHTN |
Quote |
Chart |
News |
PowerRating).
Yes, we are riding some
of the same ponies, but why not?
On the shortside because
of the oversold condition, I want to stay strictly with the proxies. Right now,
the futures improved a little bit, the S&Ps are -5, Nasdaq -8, and the Dow
-54.Â
Have a good trading day.
Five-minute chart of
Monday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Monday’s NYSE TICKS