Another blown opportunity for the bears this morning. After closing the S&P 500 at 2046, or a point below the 50 day exponential moving average, the bears had the bulls where they wanted them.
A gap down this morning would have the index trading further below those key 50's and testing the 200 DMA at 2023. The futures started down nicely last night but the usual save as the evening went on.
With the dollar continuing its rally this past week, it will not have to make a decision as to the nature of the rally. As you can see, the DXY is now approaching the 1.618 extension off the lows, which is ordinarily the target for a wave iii.
The question will then become if the market can pullback and hold the 1.00 extension at 94.20, and then head up to the 95.
The Emini S&P 500 (ES) is under pressure this morning, perhaps in reaction to the surprise rate cut by the Australian Central Bank.
Here are four stocks among more than 20 featured in last night's Charts of the Day video.
Exelixis, Inc. (EXEL) announced FDA approval on Monday, and then popped 25 cents to 4.66, or 5.67%, on 9.4 million shares. The stock did very well during the session, but backed off, and then at the end of the day, it popped after hours, consolidated, and popped again.
Here are the wave counts on four stocks reporting tomorrow before market open.
While no confirmed local top is in place yet, Whirlpool Corp. (WHR), which has risen more than 50% off its January low, is really in need of a corrective retrace. So the stock is not something I would hold long into its earnings release.
AK Steel Holding Corporation (AKS) has completed a potential 5 waves up off the Jan low.
Here are the wave counts on three stocks reporting in the morning.
The Sherwin-Williams Company (SHW) is at the top of its rising channel. Even if one wanted to count more bullishly than an ending diagonal for wave (5) on the chart, you still ONLY have 3 waves up (of near equal size) into earnings, which are huge warnings signs, and possibly setting up for a 4th wave down.
Some have said that when I discuss an alternative count, that is usually the point in time when the market has pushed the primary count far enough and it then confirms. Well, this past week, the market pushed our primary bearish count in the USO to the point that I began to “consider” that the lows have been seen in the complex. But, it has still not invalidated that count.
News that Saudi Arabia and Russia agreed to a production freeze sent the market, and oil stocks in particular, running yesterday. Here are four charts to watch.
Celator Pharmaceuticals, Inc. (CPXX), one of our swing trades, is acting great. On Tuesday, it was up 82 cents to 13.21, or 6.6%, on 2.7 million shares. Ever since the huge breakaway gap it has be running up in a channel.