The Closing Print live trading and financial blog during market hours.

Are the Indices Showing Signs of Distribution or Consolidation of Recent Gains?

The Indices have cooled off this week, after trending bullish for seventeen (17) trading days. Since the December 26 low SPY gained over 14%, so it would be normal to see a bit of distribution. That said, SPY could take a few days off and consolidate those gains in time rather than price (pullback to a lower price point). So which is it? Distribution or consolidation?

SPY Takes a Break

SPY showed some strength in the second half of the Wednesday trading day, rising back to the upper trend line in this 60-minute chart. In addition, RSI is doing its best to stay above 50, a welcome trend for the bulls.


SPY Just Price 60min


SPY also showed a reluctance to pull back to the 23.6% Fibonacci, where anything less than 38.2% is viewed as a strong trend. It also gives bulls another sign that the trend might continue.

Bulls need to see a break-out of the 2-day descending channel illustrated, coupled with TICK cumulative crossing over and rising again. A new trend in the latter would be a confirmation signal.



Watchlist Stocks – Relative Strength

Many of the stocks on the watchlist are showing relative strength this week, closing near the highs yesterday.


Watchlist 1 -01-24-2019

Watchlist 2 - 01-24-2019


Earnings results in the airline and semiconductor groups are helping this morning, with XLNX (9.46%) trading higher on “record revenues, and LRCX following (+6.37%) in early trading this morning.


Semis Earnings 01-24-2019


Futures just pulled back as we send this out. VIX is trading 19.98.


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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 investment advisor 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. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advise” to enter any particular position or asset.

Investment Warnings

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.

Live Sessions

Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned. 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. 

As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.

These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.