Volatiliy lives! The Emini S&P 500 (ES) is routinely gyrating in a 20-25 point range, while oil traverses $2 with ease. Such is life in the markets today (lately), ahead of Friday's jobs report, which I think is responsible for the "range-bound" nervousness.
Here are three charts to watch as part of my Charts of the Day video featuring more than a dozen stocks.
Rovi Corporation (ROVI) continues to act well, up on Wednesday 77 cents to 19.53, or 4.1%, on 1 million shares. It has 2 days to cover and looks like it wants to go to 19 3/4. Targets are 22 1/2 and 25.
VirnetX Holding Corp (VHC) is the stock to pay attention to because on Thursday, it could be the stock of the day.
While the bounce we saw off the 1910 support level in the S&P 500 earlier today is a bit small to solidly view it as a wave 2 retrace in this downtrend, a break of 1895 would make it likely that it is exactly what it was. Support below that is the 1880 level, and below that we are heading down to the 1835-1850 SPX region, which may still be an expanded (b) wave, as presented earlier.
Here are our wave counts on three stocks reporting tomorrow morning.
Pfizer (PFE) looks like it should get a bounce towards 32 in the 4th wave of an ending diagonal. From there the 5th wave points to 28.
Exxon (XOM) may get a drop in the 5th wave of what is marked as a (C) wave down on the chart.
The Emini S&P 500 pushed beyond its breakout plateau at 1902/10 to above 1930 today, as the blindsided "rate cut" by the BOJ surprised the shorts, who have been forced to cover their positions all day.
Here are the wave counts on five stocks reporting after the close.
Hanesbrands (HBI) appears to be in a 3rd wave up from the September low. I would still like to see the .618 extension at 31.70 reached to complete wave i of 3 though, before a pullback in wave ii.
Align Technology (ALGN) should be in a 5th wave of (3) on the chart, but looks like an ending diagonal structure.
In tonight's Charts of the Day video we feature nearly 20 charts both long and short. Here are 3 of the shorts to watch.
Brookdale Senior Living Inc. (BKD) has been weak all year, and it continues to bear flag and bear wedge all the way down, going from the 40 range all the way down to the 14 range. The most recent little wedge may very well lead to lower levels. It was down another 53 cents on Monday to 15.02, or 1.4%, on 2.
Steel Dynamics Inc. (STLD), which reports at the close today, is the kind of chart that speaks to a coming change in leadership. It has a really beautifully completing correction with very clear subwaves and specifically a very clear ending diagonal down from June.
On earnings it could get a spike a bit lower toward the 14.