Today was another one of those days where we got better than expected economic news which caused stocks to sell off and bond yields to rise. Although we’re still range-bound, there was some interesting action today.
The Dow is still at the upper end of its range and is in overbought territory based on my stochastic indicator. The S&P 500 and NASDAQ charts look a little different though. The S&P has also reached overbought levels but it has only risen to the middle of its range. It also dropped back beneath its 50-day moving average, and looks like it’s in a downward sloping channel:
The NASDAQ managed to stay above its 50-day moving average today, but it also looks like it’s starting a down-trending channel. That channel might be defined by its lower Bollinger Band. The NASDAQ has pretty much stayed in its upper Bollinger Band throughout the recent 4 month rally. But this month it’s been trapped in the lower band and it doesn’t look like that will change in the immediate future. (so watch it pop through tomorrow!)
The SOX had a good day today on the back of AMAT’s earnings, but it failed again at 400.
