If You Think a Pancake Is Flat, You Should See Today's Breadth
On a day where small-caps fill a gap and reverse to close higher, breadth could not have been more even. Plus, JBHT, NSC, FDX, BIDU and more!
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The Market
At least IWM filled the gap and rallied from there. It ought to rally at least another day but it is difficult to make the case with the statistics.
For example the breadth of the market was flat. And I mean flat as a pancake. The net differential was minus one. One issue. That was it! And volume? On the NYSE up volume was 1.793 billion shares and down volume was 1.793 billion shares. So that net was exactly zero. I am not sure it could have been flatter if it tried.
Thus none of the indicators changed. The number of stocks making new highs continues to contract while new lows inched upward. So there is little new there.
In terms of groups, OIH finally rallied and came to life. But it is the Transports I find fascinating here. They tried to break and couldn’t. And we might say that the lower oil prices didn’t seem to help them as we see the slide in Transports came as we slid in energy.
Down below you’ll see I have followed up on two stocks that have either been asked about or I have offered up (JBHT and NSC) as potential rally stocks. And I’d probably add FedEX FDX to the list.
I will end by noting the DSI for the VIX is at 13 now. Maybe Chair Powell will shake things up on Wednesday.
New Ideas
I am waiting for NSC to cross this downtrend line because if it can that changes the nature of the chart that has been in a downtrend since March.
FedEx has resistance all the way up, layers and layers of it, but it held the uptrend line. A move over 255 changes the pattern just a bit (minor higher high).
JBHT had the bounce off 156 I looked for. It did stop at 162 resistance but it has now pulled back to a higher low. If it can get some traction, maybe it can get to the resistance near 170.
Today's Indicator
The 30 day moving average of the advance/decline line continues down.
Q&A/Reader's Feedback
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