ChartSmarter recently moved to a subscription model. Please visit the Membership Information page to learn more about the membership options. Thanks again to all of my loyal readers – I couldn’t do this without you.
Markets briefly displayed some fortitude early on in the session following some surprising economic news at 830am, but finished near their lows for the session. As technicians we pay some, albeit little, heed to the fundamental noise. More concerning is the reaction the tape demonstrates in digesting the message. Markets closing on their lows is not a big vote of confidence, however, it could have been worse following the GDP contraction reported. More alarming to me is the action of stocks reversing intraday, following an attempted breakout. Today TOT reversed after taking out a 55.17 flat base pivot. CLR did the same after drilling past, pun intended, a 83.81 cup with handle. They were not huge reversals and could they go on to break out in the next couple days? Sure, but the prospects are faltering. Remember the best breakouts work right away. Legitimate breakouts were basically non existent Wednesday. SMTC should get the “close but no cigar” award, as it closed two cents below a 30.22 cup with handle trigger. Volume was accompanying the move, and will be watched Thursday to see if it can finish what it started today.