World markets are seeing green arrows overnight as Europe is up
small for the second day in a row and Asia bounces back a bit. The
(INDEXNIKKEI:NI225) held key support levels and finished up 1.5%.
(INDEXSP:.INX) futures are up three to four handles as we continue
to drift around in this upper level range. Use yesterday's low as
The two-day Fed meeting starts today with the statements due out
tomorrow. The S&P is now going on day 13 of consolidation,
digestion, or stalling out, however you choose to look at it. The
channel is being built above 1670ish as the 8- and 21-day moving
averages have played some catch-up. Micro support stands at 1681
with the key spot at 1670. Resistance stands at 1691 then 1698. The
psychological 1700 print has been elusive for the S&P.
There have been some micro mixed messages from some sectors for the
"very active" trader to make adjustments, but for macro
participants there has not been much to sweat. CNBC World Markets
Editor Patti Domm included some of
thoughts in her blog post last night.
We will go over some industrials this morning:
(NYSEARCA:XLI) had a sharp sell-off on Wednesday last week that
sent it below the 8-day MA, but the damage was contained at the
$44.67 area. Active traders could see this as the upper level
support to trade against. Below that, the 21-day at $44.45 is a
bigger support area.
) bounced off lows of $81.40 yesterday and saw decent gains of
1.17%. It announced a big share buyback that could help support the
stock. CAT has room to bounce toward $84.50ish. Be cautious as this
has been a laggard stock and most rallies have been sold.
) has been on a nice run since October 2011 as the macro uptrend
has been in control. The most recent technical setup in this stock
was $81.10 when it broke out of the upper level range. Besides
that, there is no real setup as it's been having a methodical grind
) had a nice move after beating its earnings report on July 19,
putting in a new pivot high at $24.95. Since then it has been in a
descending channel, showing healthy digestion. As long as it holds
above the earnings gap, which starts at $24.10, it could see higher
prices moving forward. Active traders could use yesterday's low of
$24.46, which lines up with prior pivot high and 8-day moving
average as the new point of reference to trade around as it could
get some support at this level. I'd potentially look for a trade
) had enjoyed a great run since 2009, then recently held
accelerated uptrend support, with the most recent one starting in
June. It looks a bit extended on the weekly chart, but the daily
chart looks good as if it is climbing the 8-day up. Until this
short-term moving average is violated, macro investors could stay
in the course. There is a nice bull flag continuation setup here
that would trigger above $105.60ish.
We will also take a look at some commodity and currency
(NYSEARCA:GLD) reclaimed its 50-day last week, and hugging around
this key moving averages shows some commitment. It has some
resistance at $129. A break and close below this could make GLD
look more interesting. The ETF has closed the bearish gap from
mid-June and now it needs to stay above $126.50ish to stay
(NYSEARCA:SLV) has short-term uptrend support in place since June
27's lows that has been acting as a road map. It could see some
support at $19ish where the uptrend comes into play. SLV has been
lagging gold a bit.
Gold Miners ETF
(NYSEARCA:GDX) broke above its 50-day with a nice gap up on July
22; it's been holding above this key moving average, which is
constructive. The recent micro range is $26.60-28.35. GDX needs to
break above $28.35 on good volume to get some momentum. The miners
did lead the metals off the lows.
Dollar Trust ETF
(NYSEARCA:UUP) has been trading in a downtrend since July 9, with a
big gap down on July 11 that put some more pressure on the ETF. It
broke below the 200-day on Thursday last week and is hanging by a
thread at $22 level. A break below this could lead to a retest of
prior low of $21.82.
Vanguard Europe ETF
(NYSEARCA:VGK) has seen a nice accelerated uptrend since June 24's
lows of $46.85. It reclaimed the 50-day on July 18, and has been
getting support along the 8-day since then. More people are
starting to talk about a contrarian bullish thesis in Europe,
. Holding above $51.35 would be constructive for a retest of the
current high of $53.32.
My list of go-to momentum stocks continues to supply some nice
) saw an impressive move on Friday that brought it all the way up
to $313.62, then yesterday the stock saw some profit-taking and
retraced back to $305.90, which is the first support level. Below
that $300 is another key support level. See how it handles these
(TSLA) saw a gap-and-go Friday and then a follow-through move up
yesterday to new highs at $135.37. The stock looks good on all
time-frames. Look for potential continuation above yesterday's high
of $135.37 -- almost at the level I talked about a few weeks ago in
Quick Take: Tesla Could Hit Speeds of $150
(AAPL) gave us additional entries at $441 and $444.60 yesterday. It
was nice to see AAPL having a clean move up. Holding above the last
buy pivot of $444.60 keeps the door open to the 200-day around
(GOOG), after showing some signs of exhaustion with the bearish gap
on Thursday last week, has continued to show relative weakness as
it's building an upper level range. Key short-term support is
standing at $875.61, where it could see some buyers. It's been
drifting lately around lately.
(FB) had an impressive gap-and-go after earnings. It provided
upside follow-through yesterday and gave us an additional entry at
$34.73 area. Next real resistance is $36.66-38 from May 2012's gap.
There has been a lot of movement in individual names this summer
despite the increasingly quiet market. You don't have to be all-in
in either direction, and in late July, should not be in, in my