Markets gyrated most of the session with the Dow acting the dizziest. We have been monitoring it a bit recently with the publics fascination with the very round 20000 number. It has come within 20 points 5 times since 12/20, but was unable to penetrate it on an intraday or CLOSING basis. The large 20000 figure is either a beach ball held very firmly underwater and ready to explode, or it is being bogged down and deflated with each successive failure. The S&P 500 was able to register a bullish candlestick today recording a hammer Wednesday and the longer it remains at this altitude, shrugging off several bearish candlesticks one has to wonder what the bears will need to push this index lower. The Nasdaq lagged today and eked out a small gain of .2%, respectable as twice it had declined to the tune of .5%. The healthcare group was the only major S&P sector to recede today, with the XLV falling 1%, as Trump spoke at a news conference stating that there would be bidding for drugs under his watch. Energy was the winner Wednesday with the XLE gaining 1.1% (utilities gained 1% right on energies tail) and it is now trading at the top end of a bullish morning star pattern which was completed on 11/30 with a huge 5.1% jump (to be fair that pattern works best near lows as a reversal situation). Some best of breed names that have acted well during the recent downdraft are CLR. Below is the chart and precisely how it was presented in our Tuesday Game Plan this week. Notice the round number theory came into play as it traded between the 50 and 60 figures. Today it recorded a bullish hammer candle and now rests just below its rising 50 day SMA. One can add to or initiate a new position with a buy stop above 51.50.
This article requires a Chartsmarter membership. Please click here to join.