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Friday 4/27 Mid-day Blog

Friday 4/27/18

Little more than 2 hrs remaining. Equity indices still largely at levels hit 3 hrs ago after the initial pullback from the highs.  And despite the bounce from early in the week, the larger patterns remain a negative.. And earnings have largely not helped stocks to recover, nor has the prospect of geopolitical unrest thawing a bit with N Korea seeking change-   SOX and NDX patterns increasingly resemble Head and shoulders type formations with only a break of April lows to produce some outsized volatility into mid-May.  Patterns on ETFs like XLF and XLK remain difficult to embrace.. And Selectivity in this market remains important.  Bonds have inched up throughout the day today..  We're seeing commodities stabilize a bit as Dollars gains have slowed..  And Defensives gaining ground.. With Utes, Telecomm and Real estate all up 1% or greater.. While Energy, Tech leading to the downside-  Industrials and materials also with minor losses.. Yet Breadth remains positive today.. At around 3/2-  over the next couple hours..  2659 important for SPX...  NDX 6619-   Overall, this bounce stalled where it needed to keep trends still bearish from 4/18.   But still lacking on any real selloff and this remains a difficult spot at present for both bulls and bears.  Heading into today we had just 48% of all stocks above their 50-day ma.. And 52% above their 10-day.. So despite the resiliency of the indices.  And stocks like AMZN doing well.  There are quite a few NOT making gains at present.. And worth keeping an eye on stocks that line up well as fundamental and technical shorts in the event that this week’s bounce starts to fade-   Let me know if you have questions.  Otherwise.. Have a great wkd