Good morning. Happy Wednesday.
We didn’t have many very good set ups coming into this week – the charts needed to reset. Many stocks had already broken out and rallied nicely…others just weren’t interesting. So here we are after two days of trading, and my lack of good set ups turned out to be a good thing because trading hasn’t been very good this week so far. A nice move up Monday turned into a nice move down Tuesday. From a day trading perspective, no complaints can be made. From a swing trading perspective, the easy money has been made. It’s time to let the charts reset. Besides, this is earnings season. You saw the charts posted in yesterday’s PM Obs – most stocks are dropping after reporting.
Asia/Pacific closed down across the board – losses weren’t great.
No index in Europe is up. There are a few 1% losers.
Futures here in the States suggests a gap down open for the cash market.
Here’s the SPX 15-min chart. Aside from the unfilled gaps (which are bigger than this chart indicates), the steep channel has been broken. It’s a warning on a very short term basis we may have some backing and filling ahead of us (especially considering how stocks have responded to earnings reports), but on a longer term basis, the trend remains solidly up.
headlines at Yahoo Finance
today’s upgrades/downgrades
yesterday’s Sector Performance
this week’s Earnings Reports
this week’s Economic Numbers