Friday, April 15th, 2016

Some charts Jan 30 2013

Today we some cracks in the market rally that has been grinding SPX higher since 2013. All major indexes finished lower towards the close of the day. First the GDP came in lower than expected and the US economy shrank 0.1 % for the first time in 3.5 years. This set a level of discomfort in the market place but the market waited for FOMC meeting results. The Feds took no action and cited ” sluggish US economy” as the basis for keeping the status quo on rates. The markers were set and the chips started falling in the last hour of trading.  First RUT broke through to its 10 day moving average and also IYT followed. Both have been leading the charge in this rally.

 

RUT has been the leading index in this market rally and it was the first one to decline. Now resting on the 10 day moving average is where it may find support. The next support levels are 21 day  and than 50 day. We just have to see how much it will correct. It is about time to trim extra longs and look for some cautious trading.

IYT  Is the leading indicator for DOW theorist  and must have tool to evaluate market direction among technicians. The ETF has been leading this rally and today broke that trend to the downside and came to a halt at the 10 day moving average. Looking at the stochastic you can see this ETF has been oversold for sometimes and has the stochastic now turning with a small hook to the downside.

GOOG Lets move on to the stocks that have performed well in this earning season. GOOG is forming a high flying flag pattern here. Due to general market conditions which GOOG follows it was down from its highs of 760.  The sideways action is constructive and may lead to higher prices next.

AMZN  Had bad earning sales were off by 45% and that was also an indicator of weak retail  demand around last quarter and specially the holiday season. We had a  preview of that last month from the Master card report and yesterday the confirmation came in with declining sales in the name.  EPS numbers were  fine and the stock gap opened at 284 and immediately sold off filling the gap in first hour of trading. The stock than moved higher and finished the day at 273. This kind of price action is hard to trade and there is no clear trend until the dust settles.

FB has been expecting good earnings today and it probably got it. The stock was slumping ahead of earnings  and touched 27 in the after hours trading.  Soon it was buffeted by new buyers and came to rest where almost where it closed earlier at the end of the day. We just have to see if there is a gap to the upside in pre-market trading or not. FB may resume its uptrend if the market conditions are stable.

Dantanner

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  1. […] A bad GDP report with the US economy shrinking for the first time in 3.5 years has made the market to pull back a little throwing water at the rally. RUT is the leading index here and it turned down yesterday […]



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