SPX received the positive open so a further acceleration higher was needed. The very strong resistance at 1318 put up a small fight but price blew up thru. The strong 1326 was next and price punched thru to test the 1327 resistance, which has held for the most part, for now. SPX then fell lower to the 1319 support and bounced, now sideways across the 1320-1324 range. Referencing the S/R levels, call it 1319-1326. The 2-year note auction goes off without a hitch. Not too much excitment occurring today.
Note how the NYAD is performing the opposite behavior yesterday and today, as compared to the behavior on Thursday and Friday. Keystone mentioned the divergence that was bull-friendly, now a divergence that is bear-friendly. As the NYA price moves higher today, the NYAD is slightly lower printing a HOD at +1700 today, so price is moving higher but the advancers are decreasing, so this, along with the +2100 number yesterday, hints that a pull back in the markets is needed to relieve this market positivity.
BBY beat earnings and the pre-market was all rosie, but it promptly fell on its sword after the open but now is up again. Traders really hate Best Buy, even the taxi cab driver and shoe shine boy say it is a piece of garbage. Folks are always quick to call it the 'Amazon showroom'. When the sentiment is loaded to one side of the boat, it is typically wrong. FB remains sick, looks like a test of 32 is coming next. Utilities remain strong. Looking at the SPX 30-minute chart, the 8 MA continues higher above the 34 MA keeping the bulls in the drivers seat. Negative divergence is forming and may be in play once price comes up for a matching or higher high compared to this mornings HOD at 1328.49, so watch this closely today. AAPL is higher today but tech is not leading the broad markets higher so this hints that the upside will run out of gas, perhaps as it prints in the 1326-1329 zone again.
Quite the fail for the small caps. What do you think of the move to ~770 on an intraday basis in your brand of TA? Now set to try to fulfill that H&S target at 720?
ReplyDeleteTZA also looks good to go with an intraday backtest of the inverted H&S neckline that you pointed out.
ReplyDeleteKS, can one use the 8 and 34 SMAs also for individual stocks and different time scales (e.g. from 1-minute to daily)? It -crossover/under and position of the 8 vs 34 SMA- seems rather accurate in determining up and down trends in addition to stochastic indicators such as the MACD, SSTO.
ReplyDeleteHello all, despite the slowness today in the early going, the high volatility will increase these wild strong swings in each direction. You have to try and ride the wild wave since profits turn into losses quick. Anon, the RUT still needs a back kiss of the neckline at 785-ish, like the SPX at 1340-ish, there is a gap fill there as well acting like a magnet.
ReplyDeleteTZA should work out fine in the multiple week time frame since the inverted H&S should play out. In the very short term, however, Keystone took profits in the one day trade, then renetered at the lower prints in front of the close.
Arnie, you sure can, use it as a tool for all your trades, individual stocks, ETF's, anything, but no, only use the 8 and 34 cross for the 30-minute chart. It is ismply another mechanical indicator that can keep you on a steady path since the mind and emotions are always making trouble. Lots of these tools help steer the trading ship. For daily charts, the 20-day MA is a very important moving average and place that on the top of your list to watch for all trades.