U.S. stocks advanced, sending the Standard & Poor’s 500 Index higher for a second day, as a bigger-than-estimated decrease in jobless claims bolstered optimism in the economic recovery.
“The jobless-claims report is a nice sign that things aren’t as dire as people were predicting,” said Stewart Beach, who oversees $1.1 billion as chief investment strategist at Old Second National Bank in Aurora, Illinois. “It’s a positive for stocks and taken together with the narrowing trade deficit number it’s further evidence of a slow recovery rather than a double-dip recession.”
$SPX 60 Minute: A little bearish divergence brewing. We might need a little pull back Friday and maybe Monday, but nothing looks terribly bearish so far.
$SPX: Market grinding a little higher. I've drawn what I think the market will do, which is an ABC pattern up. If so, we need a little B wave. I like the idea of B testing the 50 day MA.
$VIX: A little down day. It looks like it wants to test the support trend line below and we should see that in the near future if the SP500 is going to test the 200 day MA.
JNK: Still grinding higher. RSI and MACD have plenty of room to support more upside. Investors are still reaching for yield.
XLF: Volume on the up move is decreasing sharply. But it could easily squeeze a little more price to the 200 day MA. I expect the gap resistance to be at least near term resistance.
$COMPQ: Interesting price structure has developed. Price should test the downtrend line in the near future. That might be a natural place to reverse or take a rest. We have gaps above to close and the 200 day MA above and we should test all of that soon.
GLD: Looks very tired. Failing at price resistance. It could squeeze another little high while pushing the RSI to 70. Outside of that it looks like it needs a breather or pull back if not something more corrective. Bearish divergences at a time when everyone seems to be writing gold is going higher. It may, but it surely looks like it needs to correct first.
AAPL: Continues to rise. It’s trying to move past price resistance. Natural place to stall.
GOOG: Big up day. If the markets are going to continue higher I expect GOOG to play catch up. MACD supports higher pricing. Next stop is the upper Bollinger Band.
MY Watch List: We have more new charts on the watch list.
ABX: Stock looks very tired. Failing at prior price highs. Stock has rolled the MACD over. The move up from February looks over lapping. None of that looks bullish.
NEM: Failing at price resistance. Bearish divergences. At least a pull back to the uptrend line seems in order. It's the fade trade.
JWN: Stock is still consolidating above the 50 day MA and the downtrend line. For now, that’s all bullish.
UNP: This could become a short candidate. Stock squeezed a new higher, but a fall in price below new major support while rolling over the MACD could be very bearish. I would consider it an aggressive trade right now. It still looks like it needs to finish a little wave 4 and then 5 higher to exhaust the pattern.
GLL: A little move higher today back over the support line. Maybe price is going to move higher as the Bollinger Bands pinch and release volatility. MACD is trying to turn up but needs a little more effort. First targets are the upper Bollinger Band, 50 day MA, and covering some minor gaps. If I'm going to trade any chart when bottom fishing, it doesn't get any better than this one. I can't ask for better technicals. Note: That doesn't guarantee it's going higher but increases our odds of getting right and that's all we can ask for in trading. Any follow through tomorrow is very good for the current view.
CRNT: How good has this performed. Still grinding higher. 200 day MA is a definite target. That being said, the RSI is wildly over bought. So maybe the 200 day MA intraday and then it rests. Just spit balling.
OSIS: At major resistance. The move down and back up looks like ABC patterns. If so, the Ascending wedge pattern needs a pull back before another assault on resistance.
PVH: Stock grinds a little higher and pressuring the upper Bollinger Band. Price resistance directly over head. It’s a little more bullish above that.
OCLR: Stock is flagging right below the downtrend line. Still looks like higher price to come.
FLML: Today was very disappointing. It tried early to put the break out in place but failed. It's right on the neckline. We should know very soon, and this is why fractional positions.
From My Trading Desk: Today we sold our MMM for a gain. The stock just didn’t have the legs I was looking for out of a little two day consolidation. We did fill our position to full on PVH. We opened a half position on GLL, a half short position on NEM, and a full short position on ABX which we subsequently closed for gain. I didn't want to have too many bearish trades going on gold related plays over night.
Hopefully, I want make any new trades tomorrow going into the weekend unless something looks really good.
Happy Trading.
J.D. Rosendahl, Rosey