Markets started the week Monday closing positive by the slimmest of margins. The S&P 500 is trading in a very narrow range the past week, but a look at the Nasdaq shows the benchmark now 167 handles above its 50 day SMA. Very strong, perhaps to so. Action among leading stocks was somewhat quiet, with the exception of PCLN which hit a 13 year high today, rising 1.5% on the back of Fridays 4% move after earnings. DDD which has advanced 30% the past 3 weeks, started this one off with a 7.5% move higher. The base is very deep and the right side has formed very quickly, so the 48.11 cup base trigger it is approaching could be failure prone. We discussed how elated Elon Musk must have been last week, but SCTY vaulted 24% today, closing up 200% YTD. That figure is before the stock reported earnings after the close. Lets see how the stock reacts to its release. SDS closed just above the 40 handle we discussed last week, a spot I thought could be prudent to trim longs. The ETF is up a grand total of 4 weeks this year, a downtrend indeed, but a dead cat bounce could develop bringing it toward 50 day SMA resistance.
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