Rally Stalls
The market moved lower today and small caps led the decline. The bulls did not build on last week's positive rally, but volume was light. Bonds found support and oil dropped. The market does not look good heading into tomorrow. The SPX needs to get above 1065 to stand a chance of closing higher this week.
It will be a highly energized next couple sessions. Economic data of influence will be released each day this week. Today, we already had news from Japan of a plan to stall the yen. Japan's central bank voted to keep the key lending rate at 0.1% and to expand credit to banks by 10 trillion yen to 30 trillion yen. In the U.S. figures about personal spending and income were announced. Personal income increased 0.2% and personal spending increased 0.4%, which beat estimates.
Tomorrow, the market gets home price data, confidence, and FOMC minutes. The rest of the week is spotted with employment numbers.
Netflix (Nasdaq: NFLX)(CHART)
has a highly bearish setup.
The stock could be setting up for a massive decline. On August 17, the stock
made a topping candle on high volume. The next day shares gapped down and
confirmed the top. After the decline from $140 shares stabilized over the
past few days above $120. The 50 day moving average is around $118, which has
lent support to the stock. That could end shortly.
Although the recent bullish run came with high volume, so has the decline
from those highs. Back in May we can see another clear topping candle, which
indicates strong selling at $120. Additionally, technical indicators have
also turned bearish. The MACD and Stochastics made bearish crossovers, which
confirmed the top. Currently, RSI is above 50 but at 51 that may change. The
initial target takes shares to $112, but if that doesn't hold they fall to
200DMA support.
The only argument the bulls can possibly have is the long-term trend is up.
Also, a superior business model.
Watch List
The
TradeMaster Daily Stock Alerts' watch list was lower
today, much like the market.
Leading the way were big gains from TriTech (Nasdaq: TRIT)
and our levered etfs.
Send comments anytime editor@trademasterstocks.com
