Wednesday, March 28, 2018

Range Day Report: Grinder Hides Breadth as NYSE Advancers Lead Decliners...

After the Close Review of Wednesday’s market action… $INDU, GS, TRV, WMT, MRK, PG, CVX, AAPL, CAT, INTC, DWDP, IWM, SPY, QQQ, AMZN, TSLA, NFLX, NVDA, AAPL, INTC, MU, ATVI, BA, MS, TXN, MSFT, ADBE, CRM, WDC, WLL, STX, ADSK,  more great setups …10:23 pm PST
© 2018

The grinder worked overtime on Wednesday as the SPX opened slightly higher and went up, down, up, down, up, down, up, down, up, down, up, down, up, down, up and down.  Yes, it really did.  Check out the one day chart.  And so did the DIA, IWM, SPY and QQQ.  Classic range day!  Hidden in the range was a strengthening in the breadth of the market as 4 sectors moved higher and advancers led decliners on the NYSE.

NVDA -1.85% continued to fall early but found a support level and then channeled for the second half of the day.  AMZN, AAPL, INTC, NFLX, CSCO, TSLA, AVGO, BIDU, PYPL, AMAT and BKNG accounted for 66 of the 69 points the NDX fell on Wednesday.

Remember that tomorrow is the last day of trading this week and you may need to close expiring options positions before the close.  Three-day Easter weekend beginning with Good Friday.

The DJIA, closed down 9 points at 23,848, led by strength in GS, TRV, WMT, MRK and PG offset by weakness in CVX, AAPL, CAT, INTC, and DWDP

Four sectors were higher on Wednesday, led by real estate XLRE +1.83%, and staples XLP +1.38%.

SPY down .77 at 259.83 on 146.4 million shares, 33% above average volume.  Down on higher volume.
VIX up .37 at 22.87
Oil up .01 to 64.67
TLT up .32 at 121.31 on 7.4 million shares.

MRK +2.49%, WMT +2.00% led the DJIA, 16 advancers.
M +4.34%, EQR +3.71% and SPG +3.62%, led the SPX.
SHPG +12.15%, CELG +3.03% and REGN +2.81% led the NDX.

Intermediate and long term up trend intact.  3-day short term trend is down.


Breadth strengthened on Wednesday, as advancers led 1,505 to 1,392 on the NYSE and decliners led 1,630 to 1,260 on the NASDAQ.

The SPY MFC green line is pointed down at 27, short-term bearish

Uptrend sectorsXLRE,
Neutral sectors: XLY, XLF, XLV, XLI, XLB, XLE, XLU, XLK
Down trend sectors: XLP,

Intermediate-term trending stocks:  Many of these stocks have had significant pull backs over the past month and it is appropriate to wait for the uptrend to resume before considering entry… ADBE, MU, SQ, RNG, IBKR, SHOP, BA, NVDA, RACE, VRSN, ATVI, WB, V, ANET, ISRG, TAL, EA, EBAY, LYV, CAT, MAR, ALGN, CCL, RCL, TRU, WYN, PYPL, A, AABA, BABA, FCAU,  FB, CBOE, TTWO, WYNN, AA, WUBA, EDU, CC,

31 of 100 NDX stocks closed higher on Wednesday.

7 NDX stocks are above their 30 DMA.  

NDX Stocks to Watch on Thursday:
Moving Above 30 DMA = 2

Moving Below 30 DMA = 6

The intermediate and long-term trends are still up.  The three-month trend is sideways.  The eight-day trend is down.

6-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Down

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snp said...

grinder so true. i posted that i thought the market would provide a dead cat bounce to produce some divergence. here we are. qqq is best example as it has a lower low, with a higher rsi. if you are shorting here be very nimble. looks like if markets dont absolutely cave in here that divergences are building for a pivot and run up. i like 2710 to get short for a bit. before then i cant really see it as being productive. traders may exit again last day of week tomorrow as they did last friday. i would like to see an exhaustion sell off for a long entry, maybe at qqq 200 dma.

snp said...

playing my harp here but one of the stocks that has not suffered as much on this drop is intc. one look at the divergence across daily weekly and monthly charts tells me around $55 would be a great short or at least a place to stand aside. the charts are saying that is a top that may last many months to years, and i would gauge it will see the mid to low 30's before its done. i dont know what would cause that but the charts say its way over done.