I think the floor is ready to drop out here finally.
1. Most sectors have fallen over the past week or two, but you wouldn't know it from watching SPY (by design).
2. Big upward moves into XLP and XLU (defensive sectors).
3. FAANGs launch into resistance levels over the past week (to hide the selling in many other smaller-weighted names).
4. McClellan Oscillator...
BREADTH
1. More and more stocks in the sector are going on Point & Figure sell signals showing supply is gaining control.
2. $VXN (NDQ volatility) is making higher lows despite higher highs in the Nasdaq.
3. The hourly chart is showing a rising wedge into the underside of the 20MA (120MA displayed).
PRICE
4. Tech has been running up against its weekly upper...
ES held strong at the last support level and is now breaking up out of the range and the 24hr MA is turning up. The internals are still strong so DTL's (Downtrend Line) breaks need to be bought. In addition the VIX is selling off and Equity PCR (put/call ratio) is pulling back supporting more upside. Looking for channel high as a target and see how price...
The market internals are very strong right now via breadth such as the %above 200MA causing very shallow pullbacks and a stairstep higher grinding move in ES. Currently, however, price is at the channel high. VIX expiration is Wed morning, and the next VIX futures contract is almost two points higher. In addition, this is the opex where the last of the election...
IYR broke out of an inerse head and shoulders pattern om the first trading day of 2017. It since formed a bull flag and broke out of that on Thursday. I am looking for a target of $80.50+ at longer-term resistance.
A weak sector for when the market switches gears. When the broad indices eventually start to pull back, XBI should bare a large part of the selling. My stop is at 61.50, risking .60c to potentially make $8.50
The early November low established a daily uptrending channel on SPY. In addition, the daily 100MA (aka 20wk MA) is still trending up, indicating a bullish intermediate-term trend. The 100MA bands (set to 5%) usually mark a near ceiling for price movement to the upside (in calm markets, not bear markets). Use caution with 5% settings on the downside because...
