© 2018
The SPX traded in a range on
expiration Friday as SPY, DIA and QQQ closed higher for the third straight
week. The SPY, DIA and QQQ had seven intraday pullbacks as
the trend rose over the past five days.
The DJIA, closed down 6 points at 23,995, led by strength in PFE, UNH
and INTC offset by weakness
in WBA, AAPL and CVX.
Five of eleven sectors were higher on Friday, led by healthcare XLV +0.33% and industrials XLI +1.36%.
SPY up .10 at 258.98 on 73.8 million
shares, 48% below average volume. Up on lower volume.
VIX down 1.31 at 18.19
Oil down .62 at 51.70
TLT up .47 at 120.93 on 5.7 million shares.
PFE +1.35%, UNH +1.14%, led the DJIA, 15 advancers, -5
GM +7.05%, PVH +6.90% and PRGO +3.28%, led the SPX.
NFLX +3.98%, AMD +2.68%, ULTA +2.56%, and NVDA +2.48% led the NDX.
Long term up
trend intact. 3-day short term trend is up.
Up: SPY,
IWM,
Down: DIA, QQQ,
Breadth weakened
slightly on Friday, as advancers led 1,641 to 1,256 on the NYSE and led 1,679 to 1,324 on the NASDAQ
The SPY
MFC green line is pointed up at 52 and
is short-term bullish.
Uptrend sectors:
Neutral sectors:
XLU, XLRE, XLB, XLY, XLC, XLV, XLI,
Down trend sectors: XLK,
XLP, XLF, XLE,
The 6-month intermediate
trend is down. The ten-day trend is up.
3-month Intermediate Term Market Trend: Down
3-day Short Term Market Trend: Up
56 of 100 NDX stocks closed higher on Friday.
70 NDX stocks are above their 30
DMA: DLTR, REGN, WDAY, XRAY, ROST, LULU,
CELG, INCY, NFLX, AMGN, AMZN, BIIB, CDNS, CTRP, EA, EBAY, FB, GILD, GOOGL,
INTC, JD, PCAR, PYPL, TMUS, VRTX, WYNN, XLNX, AMD, CTAS, MELI, NTES, TXN, ULTA,
VRSN, ADBE, ADSK, BMRN, HAS, INTU, MCHP, TTWO, ADI, ALXN, AMAT, ASML, AVGO,
FOXA, IDXX, ISRG, KLAC, LRCX, MU, NXPI, SNPS, CERN, CTXS, FAST, JBHT, MDLZ,
MNST, NVDA, PAYX, QCOM, SIRI, SWKS, TSLA, WDC, WLTW, MXIM, NTAP,
NDX Stocks to Watch on Monday:
Moving Above 30 DMA = 2
MXIM, NTAP
Moving Below 30 DMA = 4
ATVI, CHKP, MAR, ORLY,
5 comments:
Hi Dave! Happy New Year!
Am I reading that SPY move up on 48% lower volume as a sign that there are no buyers at this price level and therefore a continued short term projection upwards (in price) to find sellers?
Steve
Also, what time frame are you using to establish the average volume comment?
Sorry, Dave, I meant no sellers and therefore a continued upward momentum...
Steve, there are sellers just not as many when volume is higher. Buyers and sellers are in balance. That balance is why SPY is staying near resistance. I use 30 days, but a trader can use any average they would like. Dave
Thank you, David. (of course, there are sellers since you have to have a buyer and seller for each transaction) I have been checking chartsignals for over 10 years and it is infrequent that you highlight low volume. That made me think about it and the fact that the market makers have to find the opposite of a trade and if there are none at the current price then they have to go in the direction of the supply and demand. Therefore, a low volume correlation to a particular move can be just as valid as a high volume correlation it seems.
Thank you for the 30 days notes - I will look at the 30 day volume average. I typically use 365 MA for volume but with the recent volume spike (similar to 2008) I have moved to a 90 day as more indicative of what the "average" volume should be.
Steve
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