Markets closed very close to the UNCH level as both the Nasdaq and S&P 500 were little changed. Of course all the hoopla is over the Dow at all time highs. Whenever these types of headlines garner major media attention, it is somewhat concerning, but the tape is proving somewhat stubborn on the upside. As the markets complexion is on the mend (for example Tuesday 52 week highs against 52 week lows for the 408-24 for the NYSE, and 251-16 on the Nasdaq), more breakouts are occurring, which is just what you would like to see. Today TUMI took out a flat base trigger of 24.09, XYL took out a 28.97 cup base pattern dating back a year almost to its IPO date. A good example of why I never like to hold into earnings or front run a trigger point is AEO. The stock rose almost 8.5% Monday and Tuesday, and came very close to approaching a 23.07 flat base pivot point, before a 10% drop on earnings today. The stock did find 200 day SMA support today. A look into 2 iconic, domestic steel names shows 2 very different stories. Many like to say the bulk of a stocks move, comes from the sector it belongs to. There are always exceptions to every rule, and today we look at NUE and X. NUE which retook its 50 day SMA today is off a mere 4.5% from its most recent 52 week high, while X cowers more than 35% off its 52 week high. Even a devoted chartist like myself must admit the fundamentals (management perhaps in this case) come into play as well.
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