Last night, after analyzing the 60 minute charts, the thought occurred to me that we are remaining at the top of these ascending channels. This reflects the strength that bears have to deal with. Until we move more forcefully lower, we anticipate flags will continue to permeate the markets. Stock components of these indices, as result, will likely benefit from the lack of a wet blanket on individual stock performance.
The NASDAQ composite is showing strength, as we can see with it’s 60 minute chart. NDX100 components and QQQ will benefit if Apple, Amazon, Microsoft, Google and Facebook, among others, start moving higher today. Generally speaking, we can feel the inherit strength in the market, as big tech stocks fail to pull back with any veracity.
The S&P500 (SPY) also reflects this strength, as the stocks/components therein benefit from little downside momentum from the index. Price is above the 9/20ema. Here again, price is staying in the upper part of this ascending channel, which reflects persistent strength in the index ETF. Check the “Block-Trades” channel on Slack.
Additionally, the gap above the 20 million in block transactions that traded at the 226.46 level over the past two days will act as fuel for an additional push higher. If you were in the trading room late yesterday, we presented this dilemma for the bearish minded traders remaining, that felt we would move lower. We still can move lower, but onnly if we move off of this upper trend line.
Keep an eye on the oscillators, especially TICK cumulative. Stochastic is turning and RSI suggests strength on the 60 minute time frame.
I’d like to welcome all of the new members. Here is the weekly video newsletter for those members who joined in the past couple of days. IBD50 candidates are towards the end of the video.
We typically send out the watch on Sunday, so I have included it below.
Happy Tuesday, it should be a good one.
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up;
Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.