Send me real-time posts from this site at my email

Today's Trackdown: Friday - May 3, 2019

  • Brief Recap and Updates on the Markets
  • SPY Charts and some Technical Analysis

In Thursday's action:

The S&P 500 declined 6 points on Thursday. There was a lack of buying interest following the Fed's decision Wednesday to remain firmly on hold. With few catalysts to support a move back to all-time highs, investors embraced some profit-taking that sent the S&P 500 back to test the 2900 level.


News to keep in mind Friday morning:

  • Futures trade vs fair value were a bit higher late last night. Dow +19, S&P +4, Nasdaq +25, Russell +4.
  • The biggest factors in the market right now are; Global Economy, China trade talks, Fed speak, and the US Treasury markets.
  • Keep an eye on the VIX - The Vix is still down in the low teens. This is a 'risk-on' level.

Today's Economic Calendar:


Quick Notes:   $TSLA

Tesla (TSLA 244.10, +10.09) rose 4.3% after the company announced plans to raise $2.0 billion through new equity and convertible notes.

Tiger's Take: Dumb move to buy this, the company is diluting shareholders and adding more debt. AFTER repeatedly saying it did not need to raise money. Nothing can be believed here with them.


THE CHARTS:

The markets were down on Thursday. But this did alleviate the overbought Stochastics condition and they are now neutral. So returning to our uptrend soon is very possible.

We are still above the SPY 280 and 290 levels, which have become support.

The 20-day, 50-day and 200-day MAs are all rising. This is a good sign for the market technically when the moving averages are all headed in an upward sloping direction.

The MACD is positive. The Stochastics are neutral. The Money Flow is positive.

NOTE: Due to the Stochastics being overbought, we could have short-term pullbacks, but currently they should be bought as the MACD, the Money Flow, and other technicals are all positive. Once the stochastics are no longer showing overbought I expect the uptrend to continue.

The 50-day MA (284.05)(+.28) and the 200-day MA (274.84)(+.08) are both support levels.

On the 9-month chart below, the previous patterns are behind us. Shown now is the support levels at 280 and 290. We are now just below the area of the all-time highs which could be considered resistance.

  • Nasdaq Composite +21.1% YTD
  • Russell 2000 +17.4% YTD
  • S&P 500 +16.4% YTD
  • Dow Jones Industrial Average +12.8% YTD

$SPY $DIA $IWM $QQQ

Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

If you liked this article, please click the LIKE (thumbs up) button.

Feel free to leave any comments, question, or opinions.

Follow us and check back occasionally for additional articles or comments.

With our Daily Trackdowns, additional analysis/observations during the trading day in the comments by us or our readers.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue