General Market Technicals:
Overall:
The market continues to be in bullish mode. Currently over 52% of stocks on the NYSE are trading above their 50-day MA. This number was 51% last week, and 43% four weeks ago.
Take note that the NYSE stocks briefly flirted with overbought levels last week, as 72% of stocks were trading above their 10-wk MA (70% and higher is overbought). That number has backed off to 69% today.
However, there is still more potential for upside, as only 50% of stocks on the NYSE are trading above the 30-wk MA.
On the OTC, 37.5% of stocks are trading above their 50-day MA. This number is unchanged from last week.
Sector Focus:
Consumer Staples [[XLP]]: Neutral. It had been in a long term bullish uptrend, but since Mid-January, has been moving sideways with a slight bullish bias. From a recent low in March, it has reversed to the upside. A move above $30 would resume the bullish trend.
Consumer Discretionary [[XLY]]: Neutral, with a bullish bias. Consolidating. An intraday move to 34 initiates a bullish double top breakout .
Energy [[XLE]]: Bullish/Neutral. Double top breakout was at 86. Extended and vulnerable to a sell off, however. Momo players proceed with caution. Potential to short names in this sector.
Financials [[XLF]]: Bearish pattern, consolidating. Strong resistance to the upside in this trading range up to 28. A break above 30 would initiate a double top breakout pattern, but still a long ways off. Support at 25. Look for short ideas in this sector.
Health Care [[XLV]]: Bearish. Double bottom breakdown pattern. Support is at 30. A break below could eventually take it down to 23. Look for short ideas in this sector.
Industrials [[XLI]]: Neutral. Bullish pattern, consolidating. Extended long term. Vulnerable to a correction. Bulls, I wouldn’t get excited about it until it approaches 41. A move to 42 would initiate a triple top breakout. Keep it on the radar. Support down to 37.
Materials [[XLB]]: Bullish. Double top breakout. Has broken out to new highs after long period of consolidation from 39 – 42. Looking a little extended, however. Strong support at 40 – 41.
Tech [[XLK]]: Neutral, bullish bias. Consolidating. On the watch list. A move to 28 sets up a potential bullish breakout. But, this one needs time. Support at 20 – 21.
Utilities [[XLU]]: Bullish. Breaking out after period of consolidation. Strong support at 39.
Telecom [[IYZ]]: Bearish. Recently reversed, but still bearish overall. Risk: sell-off to 22. A break below 21 doesn’t see support until 19.00 – 19.50.
Each day, I take a look at which sectors are doing well, bad or reversing. From that information, I look at stock ideas in each sector for long or short ideas, based upon which way the tide is moving.
Disclaimer: This information is not intended to be used as the primary basis of investment decisions. Because of individual investors requirements, it should not be construed as advice designed to meet the particular investment needs of any investor. Consult your financial advisor prior to taking any actions. The information and opinions contained here are those of the author and are not necessarily the same as those of iBankCoin, its principals or its affiliates. The author may have a position in one or more stocks mentioned here. Trade at your own risk.
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