The S&P 500 has done little since mid-March, but the dullness has disguised spikes in the most speculative areas of the market, as well as some of the go-go momentum names in sectors.
These names include
, which reversed sharply on Thursday.
Archer Daniels Midland
, as well as recent swing picks I've examined in
The Trading Reports:
We did not see momentous momentum on Thursday, but the S&P did squeak out another solid up session, closing over the 1310 pivot once again with a close of 1312.25. It is important to remember that as long as the overall market is not getting hit and the S&P is in the green, then it is easy for individual, strongly trending stocks to make further gains.
The S&P appears well poised for a breakout on Friday, as it has traced out a Cup and Handle pattern within a Cup and Handle. Additionally, the daily pattern from Thursday, as it pertains to the 10-minute chart, also supports the notion of a strong Friday close as long as the market holds over any first-hour highs.
The story of the day was oil, which has given two large-range piggyback decliners resulting in a quick $5 pullback off its highs. Because oil has closed back below last year's $70-$71 high, the price action may, as shown yesterday, indicate that a consolidation/pullback phase is upon us.
ETF also pulled back sharply intraday, going red during the session, probably in sympathy with oil.
Gold is approaching a key window of $680 to $720 that, in my work, represents resistance, which should lead to a setback within an ongoing bull market as well.
S&P 500 10-Minute
S&P 500 Daily
Equinix (EQIX:Nasdaq) Daily
MGP Ingredients (MGPI:Nasdaq) Daily
streetTRACKS Gold (GLD:NYSE) 10-Minute
Zoltek (ZOLT:Nasdaq) Daily
Jeff Cooper is the creator of the Hit and Run Methodology and the author of the best-selling books
Hit and Run Trading (The Short-Term Stock Traders' Bible)
Hit and Run II (Capturing Explosive Short-Term Moves in Stocks)
, as well as a video course, Jeff Cooper on Dominating the Day Trading Market. He also created the Hit and Run Nightly Reports and co-founded a trading markets Internet site.
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