Welcome to the recap of Friday's MarketWatchers LIVE show. Listen and watch a show devoted to technical analysis of the stock market with live market updates. It's StockCharts.com's antidote for the CNBC/FBN lunchtime chatter.
Information abounds in our Monday/Wednesday/Friday 12:00p - 1:30p shows, but we will try to incorporate a few charts that you found the most interesting during the show (or that we found most interesting!). Your comments, questions and suggestions are welcome. Our Twitter handle is @MktWatchersLIVE, use #MWLSCC (MarketWatchers LIVE StockCharts.com) to see what other viewers are talking about! Email is marketwatchers@stockcharts.com and our Facebook page is up and running so "like" it at MarketWatchers LIVE.
What Happened Today?
Market Update:
Everyday, Tom and Erin start the show off with important earnings announcements, economic news and developing news in the major markets. Interestingly, Canadian ETF (EWC) appears to have found support. It was a good day for Oil; we could be seeing the results given this bullish long white candle which suggests strong buying pressure.
Talking Technically: On Friday Tom and Erin focus on sentiment, interesting news, social media questions/polls, etc. Tom pointed out that yields are rising and this is generally bullish for the market.
Market Updates: Erin reviews the intraday action of the major indexes, sectors and the "Big Four", (Dollar, Gold, Oil & Bonds).
Erin reviewed both the daily and weekly Gold charts. Clearly Gold is correcting, but its drop out of the rising trend channel is concerning..as are the indicators. The weekly chart shows that price failed to overcome resistance where the longer-term declining tops trendline and horizontal resistance line converged at 1300. A drop below 1200 would be a big problem given it is a strong support line with many "touches" along the way.
Interesting ETFs: Tom and Erin looked at the ETF Summary and found that the Russian ETF (RSX) was one of the leaders in percent change. Tom was bullish on the chart given that rising bottoms support is holding and there is some upside potential. Erin was bearish, seeing the possible double-top and neckline support about to be tested. Doesn't help that there is a Price Momentum Oscillator (PMO) SELL signal in the making.
Ten in Ten Before One: In this regular segment, Tom reviews ten charts in ten minutes at ten minutes to 1pm with comments from Erin and the Twitter "peanut gallery" at the end. Send in your symbol requests via Twitter (@mktwatcherslive) before the show and we'll try and add them. Tom revisited GNC after being asked if he was still bullish on it. Tom replied that he was not as bullish anymore. The drop below the 20/50-MAs is bad news, especially with a confirmation between MACD and price tops. If price holds support and can get back above those MAs, then we can talk.
Mailbag Segment: Each show Erin and Tom answer questions received via Twitter, Facebook and Email.
Erin was asked if she used the Arms Index (TRIN) in her overall analysis of the market.
"I have to say that I don't use it regularly, however I do look at it after a big volume decline. When the TRIN's reading is above 2.0, you'll typically see a rally off it."
It's a Wrap! In closing Erin discussed the Twitter viewer poll from Wednesday to see if viewers Agreed or Disagreed with Tom and Erin's outlook for Home Construction ($DJUHB). Tom was bullish and Erin was bearish. Since Wednesday, it is higher and a bullish double-bottom may be forming, but Erin is still concerned about the declining PMO and OBV confirmation of the decline (both price tops and OBV tops are declining). Viewers sided with Erin, with 86% bearish.
Take our sentiment poll before Monday morning!! Wall Street Sentiment Survey asks "pros" whether they believe the market will close higher, lower or mostly unchanged next week. Erin is voting higher and Tom is neutral. What do you think? Vote here!
Looking Forward:
Tune in on Monday at 12:00p - 1:30p EST for "Monday Set-Ups". Tom and Erin will discuss which charts look hot or not for the upcoming week. The regular segments, Ten in Ten to One and Mailbag are also on tap for Monday. We start taking symbol requests as soon as the show starts, get yours in via Twitter to see Tom annotate it during the Ten in Ten to One segment.
Happy Charting!
Tom & Erin
