Stocks Play Fill The Gap And Double Top Game On April 7

Stocks managed to rally, with the S&P 500 mustering just enough to finish up 40 bps and close the gap from yesterday’s drop. I could argue it needs four more points for the gap to be completely closed, but hitting 4521 may be good enough. It looks like we got a double top on the Intraday chart, and that would signal the rally fades tomorrow and probably undercuts today’s lows around 4,460.

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Additionally, the S&P 500 hit the 10-day exponential moving average and reversed off it. If we are in a trend change, then this moving average would signal it. It looks like the trend is shifting from higher to lower.

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Real Yields (TIP)

The TIP ETF moved lower today, and at this rate, it looks like it has further to fall. Again, this has been a good indicator of where stocks go over. Given the drop in the TIP, I would say there is a pretty good chance the decline in the NASDAQ is far from over.

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Intuit (INTU)

I’m still watching Intuit; it is a good one to watch as it may give a clue to what happens next for the broader technology sector. I mentioned Sunday it looked like it was in a bear flag. This week has tested both sides of the range and is very close to breaking down.

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JPMorgan (JPM)

The banks kick off earnings season next, and expectations have been falling for them. JPM’s first-quarter earnings estimates have dropped from $3 in January to $2.70. It explains why the stock has been so weak lately.

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Adobe (ADBE)

Adobe has that inverse Head And Shoulders pattern I also mentioned on Sunday, but it hasn’t worked. Any Head And Shoulders pattern that doesn’t do the reversal is supposed to become a continuation pattern eventually. It is starting to look like the one in H&S in Adobe will be a continuation pattern down.

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Disclaimer: Mott Capital Management, LLC is a registered investment adviser. Information ...

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