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.
Procter & Gamble (PG), Archer Daniels Midland (ADM), Cummins (CMI) and BP (BP) were among the names in motion following earnings reports early Tuesday.
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
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Happy Trading,
Vinny
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