Leading Stocks Hesitating: Exhaustion, or a Rest Before the Next Leg Up?
Screens run this evening, searching for both breakouts and breakdowns, are worth noting. A great majority of the charts are at levels which could easily be the beginning of a breakdown, or a breakout. What I mean is that leading stocks, or stocks that have held up strongly above the 50 day SMA, or stocks that have bounced solidly from longterm support (major moving avg. or trendline) seemed to be searching for confirmation of the most recent move.
GSIC rocketed to new highs in February, and pullback sharply, retracing almost 50% of the breakout move. It has since gained traction, moving in tandem with the Nasdaq. Today it met resistance at its December highs. This stock looks like it stands an equal chance of going up to new highs, or retesting the 50 day.
Here are several stocks printing a similar pattern. Click on each symbol for the chart.
CAM
WBD
TIE
These charts suggest that we will soon find out whether this bounce will be sustained, or whether we will retest last week's lows.
GSIC rocketed to new highs in February, and pullback sharply, retracing almost 50% of the breakout move. It has since gained traction, moving in tandem with the Nasdaq. Today it met resistance at its December highs. This stock looks like it stands an equal chance of going up to new highs, or retesting the 50 day.
Here are several stocks printing a similar pattern. Click on each symbol for the chart.
CAM
WBD
TIE
These charts suggest that we will soon find out whether this bounce will be sustained, or whether we will retest last week's lows.
3 comments:
I've been feeling the same way looking at charts the last couple days. Like many are saying, it would have been nice to see a pullback with greater magnitude so we could be a little more confident going forward. Maybe we'll see it, or maybe we'll just get left behind waiting for it?
This "rebound" attempt by the markets strikes me as quite pathetic.
Woodshedder, I don't know if it was me, but clicking the GSIC chart did not open an enlarged image.
No its not you iio, it is blogger. Dammit. I'll have to fix it tonight when I get home. Thanks for letting me know though.
I think today will be telling re: rebound attempts.
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