Volatility Bands And Levels
The
SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed at 1029.15, down
2% for the day. There was a minor up try from the 1033 .618 zone, which failed
at 1038, then down to the intraday low of 1026.91 on the 3:05 p.m. bar, and also
the 2.0 Volatility Band level at 1026.27. There was a quick up move from the
band to 1031.11 on the 3:30 p.m. bar, then it failed and closed at 1029.15.
After the 1040 – 1020
zone mentioned the other day, there is a strong confluence at the 995 – 975
level for the SPX. Also, today’s 1.5 Volatility Band is 1013, which is also the
1.618 Fib extension of the last leg up to 1174 on 3/19, and also the 1.618
extension of the last leg up to 1107 on 5/20.
NYSE volume jumped to 1.6
billion, which is about 25% above average, a volume ratio of 15, and breadth
-1186. Surprisingly, the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating), which finished -2.5%, had a
decline in volume to 1.571 billion, which is about 10% below average, and a
volume ratio of 20.
The sectors all closed
red, with slight green in the
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) and oil service sectors. The XAU
is actually down slightly from its May 31 close. The US dollar broke to
September lows as the flight from the dollar to other vehicles continues. My
guess is they’re afraid the US government will freeze their assets if the world
events continue to progress, as appears to be happening. In fear markets, any of
the positives are overridden, and the negatives overemphasized, but that’s how
markets have worked since the beginning of time, and it will never change. That
is the primary reason why sequence trading is without peer over extended
periods.
The semis had a good
news/bad news day. The
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) ended -3.1%, as the SIA, which is the
Semiconductor Association, had some very positive things to say, and then
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) was flip-flopped again. Their management appears to
be playing a shell game with the Street. I jot down the management comments from
Intel each time they open their mouth and save the quotes for future reference.
They belong right there with the analysts/investment banking sham. I won’t
dignify the downgrade. Too little, too late. The
(
SMH |
Quote |
Chart |
News |
PowerRating)s gave us a 1 point
pop from the 1.5 Volatility Band yesterday.
I am running out of time,
but please refer to my June
3 and June
4 commentaries which outline the lower levels I referred to, and actually,
that text could have been reprinted today after yesterday’s action. I see a big
early red in the futures, which if it holds, means big opportunity for the
daytrader when we get the contra move after the fleecing of the lambs. When
that’s done, I think I will go watch the Buick Golf Classic right down the road
if the rain lets up. Keep your helmets on because position opportunity is not
far away.
Stocks
Today
It’s clearly an Index/HOLDR day.
Have a good trading day
and have a great weekend.
Five-minute chart of
Thursday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Thursday’s NYSE TICKS