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- Alcoa (AA) has broken down through support at $29 and is an "avoid."
- AIG (AIG) remains above its 50-day moving average but is under distribution. With the secondary indicators all fading, I wouldn't be too bullish at this time.
- American Express (AXP) is testing its 50-day moving average. The stock bounced Monday and closed just below $60. I'd still look at $57 to define the extent of downside risk.
- Boeing (BA) remains within a tight volatility squeeze. Until that stock moves above $92 or below $87, I'm on the sidelines.
- Citigroup (C) has been consolidating recent gains and has bounced off support at $54.50. It is moving up in sync with American Express now. I'd keep a stop right around $54.
- Caterpillar (CAT) remains above $59, which defines current support. If the stock falls below that level, I'd sell. And I sure wouldn't buy this stock now -- the upside is limited.
DuPont remains in an uptrend, but not all trendlines are straight. I've drawn an arc around support and resistance to draw attention to the pattern: The uptrend is flattening out. We could use some fancy indicator to show how the price is gradually working its way back toward the 50-day moving average, but the eye works just as well. Notice how each pullback is coming closer and closer to the 50-day moving average. Monday's close was about flat with last Friday. The stock could fall below the 50-day moving average. If that happens, I'd sell. But until that occurs, we need to respect the uptrend. DuPont is in the agri-chemical industry group. That group has been strong for months, but many of the stocks now are under selling pressure, so I'd keep a tight stop just below $47.
The uptrend in Disney has been flattening out over the past few weeks. What's really obvious is the negative money flow reading. When a stock closes near the day's low on higher volume than it has had on advancing days, the effect will show up in money flow. But Disney hasn't broken down yet, and it's always hazardous to find a top when there isn't one. So far, we're seeing only some tight consolidation. If you're long, why not protect the position with a stop just below $33? Only when the stock pops above resistance would I be a buyer.