SPY Bull or Bear?
The S&P 500 SPY ETF has taken it on the chin this week. Resistance is holding at 284.23 (+/-) forming or what many believe to be a double top. All of the S&P 500 SPDR sectors are weak. Select stocks are moving higher, as we start the Tuesday session. Futures are green.
SPY Healthcare and Financials Sectors
Winners have been from this group, with CELG and JNJ continuing their persistence. Big banks are showing relative strength. If rotation continues out of technology, we’ll look for SPY to consolidate recent gains above the 278.00 (+/-) pivots (breakout) zone. Price came close to testing the 38.2 Fibonacci in early Monday trading. Buyers stepped up at the low.
TICK cumulative suggests institutions where buyers into the close, with block trades amounting to 5.5 (+/-) million at 279.82, With price action in the pre-market session above these block trades, we’ll assume a bullish bias today. Should SPY lose that level, 278.00 (+/-) would be our target.
Illumina vaulted more than 7%, after its second-quarter results topped analysts’ targets by wide margins. Management lifted full-year earnings guidance well above consensus views. The maker of genetic test and sequencing tools is testing support at its 10-week moving average. Tuesday’s premarket action suggests a rebound from that line of support, and into new highs.
KLA-Tencor is 4% higher in early trading, second to ILMN on the Top 10 NDX100 stocks this morning. The Milpitas, Calif. company reported a sound fiscal fourth-quarter beat on both its earnings and revenue lines late Monday. The stock is trading below a 118.66 buy point in an eight-week cup base.
For July, the Dow Jones industrial average is ahead 4.3%. The S&P 500 has so far notched a 3.1% gain. The Nasdaq is up 1.6%. The Nasdaq’s average gain in July over the past 10 years has been 3.4%. – Source IBD
We’ll be LIVE at 9:20 AM this morning.
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.