This article originally appeared on Jan. 29, 2014, on RealMoney.com. To read more content like this plus see inside Jim Cramer's multimillion-dollar portfolio for FREE... Click Here.
The number of stocks in the S&P 500 above their 50-day moving averages fell by nearly 42% last week, from more than 68% to less than 39%. Many are in the process of testing that average, and today I want to review six of them.
Three that are not making the grade are American Express (AXP), Adobe Systems (ADBE), and paper maker KapStone Paper and Packaging (KS). The daily chart shows shares of American Express breaking several key levels of support, currently trading below a horizontal resistance/support line drawn off the November highs and the December low, an uptrend line drawn off the November and December lows, and its 50-day moving average.
Adobe is forming a gravestone doji candle just below its 50-day moving average and just above the horizontal line drawn off its November high. A gravestone doji is identified by a narrow opening and closing range near the lower overall range of the candle and has all the negative connotations its name implies. The stock price remains above an intermediate term uptrend line drawn off the lows since September, but it looks vulnerable.