Market Waiting April 8, 2017
Posted by Tom in Thoughts.Tags: market analysis, stock market commentary, technical analysis, Wyckoff
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April 7, 2017 – Looking at the chart below we’ve broken the upward trend channel and have settled into a fairly narrow trading range. I’ve labeled the chart as a possible Distribution structure to be on the cautious side.
Money and Volume flows are muted and rather neutral; there isn’t much buying or selling lately. I’ve moved my support price level up just a little to 5769 on the NASDAQ Composite Index. that’s were the last “buying” started on a weekly basis. Last Wednesday could be labeled as a UTAD (up thrust after distribution), but that case is not very strong. Market Sentiment is weak, especially when compared to where we’ve come from. Volume on Thursday & Friday was low, not much activity in either direction.
Earnings reports begin week of 4-24, and that’s what this market is waiting for. Prices are fairly rich so any significant disappointments or forward guidance surprises could generate a swift reaction lower. Without any indication as to the trend, I’ve got to stay neutral and raise Cash as support levels are broken. The stocks in the broad S&P 1500 Index are split down the middle and don’t show much of a bias in either direction:
Price Strength –
Accumulation/Distribution –
This is a rare time when I’m really not seeing any edge or strength in any sector. Sure Precious Metals lately, but the action has been very erratic; Utilities, very muted trend; Technology, not a clear trend. Sector wise I’d rather be waiting in Cash.
Have a good week. …….. Tom ……..
Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.
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