S&P futures are basically flat this morning and the focus
from traders this morning is on the banks after earnings reports
). The banks delivered solid reports this morning and are now
firmly higher after some early indecision. WFC is the stronger of
the two, up 1.8% at the time of this writing, while JPM is up about
0.7%. On the flipside,
United Parcel Service
(UPS) issued a warning on its numbers and was down more than 5%
Yesterday the market opened sharply higher thanks to an afterhours
Q&A session from Chairman Ben Bernanke at the NBER conference
in Boston in which he struck a very dovish tone. The market had no
intention of giving back those gains during yesterday's session and
(INDEXDJX:.DJI) made new all-time closing highs.
Suffice to say, the market has seen an impressive comeback from the
June 24 low of 1560. When the bounce began, people chalked it up to
end-of-quarter window-dressing. When it continued with a series of
gaps, people said the rally had no validity without intraday
momentum. But now here we are. Price action will always be king.
The first technical hurdle for the S&P was reclaiming the
50-day moving average, which it did on July 5. Now the index, after
rallying 7% in just over two weeks, is just a stone's throw away
from the 2013 intraday high of 1687. At these levels with the
oscillator overbought and stocks stretched from their short-term
moving averages, it's hard to initiate new buys. However, that
doesn't mean the market is a short.
) continues its breakout to new all-time highs as it has gained
over 4% just this week and tagged the $300 mark yesterday. The move
this week for AMZN has been very impressive but at this stage, the
move is getting long in the tooth, making it hard to initiate new
) pushed up to new all-time highs in yesterday's session, finishing
up 1.57%. This stock has seen a solid move out of the upper level
wedge from our most recent buy price of $891-892. Use yesterday's
high of $920.81 as your new point of reference.
) closed yesterday up 4.34% as it broke out of the recent range
above $193. Today could be considered day one of perhaps a new leg
higher. The next potential resistance level that comes into play is
the all-time high of $20.
(NFLX) has been on the move this week as it broke out of the upper
level wedge pattern. This stock rested yesterday as it absorbed the
recent gains. Holding above $236 would be constructive going
forward. It was upgraded this morning, which could help it get
moving higher again.
Homebuilders Sector ETF
(NYSEARCA:XHB) finished yesterday up 3.59% as it saw a large gap
and go to the upside today. Yesterday's move could reverse the
recent downward pressure that has been building on this sector ETF.
Holding above yesterday's low of $30.79 would increase the validity
of today's move.
(FSLR) perked up yesterday, finishing the day up 4.08%. There is a
lower level pattern that could see follow-through above $47.60 but
the trade may need more time to develop.