Welcome to the recap of Wednesday's MarketWatchers LIVE show, your antidote for the CNBC/FBN lunchtime talking heads. Listen and watch a show devoted to technical analysis of the stock market with live market updates and symbols that are hot.
Information abounds in our Monday/Wednesday/Friday 12:00pm - 1:30pm EST shows, but the MWL blog will give you a quick recap. Be sure and check out the MarketWatchers LIVE ChartList for many of today's charts. When you first arrive at the MarketWatchers LIVE blog page, you'll see a link to the ChartList in the upper left corner. Also, we're now recording MarketWatchers LIVE shows and archiving them until the next show starts - so for a couple days you'll be able to go back at your leisure to review. That will give you an opportunity to review parts of the show, or to review it in its entirety later if you were unable to attend live. CLICK HERE for a replay of our latest show.
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What Happened Today?
Tom had focused in previous shows on the signs of slowing momentum in our aggressive areas of the market like technology (XLK), consumer discretionary (XLY) and industrials (XLI). All three have printed negative divergences on their respective weekly charts so Tom pointed out that healthcare (XLV) is the one group that had consolidated for a long period of time and recently broke out just as the slower summer season was getting started. He continues to look for strength from this group based on his analysis of the XLV weekly chart:
Tom also discussed several companies that had just reported quarterly earnings. priceline.com (PCLN) struggled throughout the session, dropping 142 points, or nearly 7%. Despite the awful performance today, PCLN did manage to bounce off rising 20 week EMA support on its weekly chart.
Agree or Disagree
Tom and Greg debated the following statement:
"Tuesday's intraday high on the NASDAQ 100 ($NDX) has marked a top that will not be cleared during the balance of August and September."
After much bantering back and forth about how he thinks the market isn't finished going higher in the longer-term, Greg finally succumbed and agreed with the statement. He indicated that the MACD and PPO uptrend lines are on the verge of breaking support and prior trendline breaks have led to further declines. Here was Greg's chart to illustrate his point:
Tom was on the same page with Greg, also agreeing with the statement above. Tom had been watching key short-term price resistance on the NDX at 5935. It was broken on Tuesday intraday, only to fail miserably into yesterday's close. Tom didn't like that tail above resistance with the close beneath and came to the conclusion that the slowing momentum on the weekly charts was going to become a much bigger factor in near-term trading. Here was Tom's three month chart and the failed breakout:
Greg reviewed several stocks that were headlining the Market Movers area on the StockCharts.com members dashboard. One of those stocks was Estee Lauder (EL), which had a very solid day today (+2.68%) on extremely heavy volume. It's been trending in a nice channel for quite some time and its SCTR has remained mostly in the top quartile when compared to its peers:
While EL is overbought in the near-term, it clearly remains one of the best stocks in its space and today's move is simply the latest in a string of upside moves.
10 in 10
During his regular segment at 12:50pm EST, Tom showed how quickly you can review and annotate 10 stocks into a ChartList using the powerful tools here at StockCharts.com. Symbol requests were sent in by viewers on Twitter and LiveStream as Tom demonstrated how to use the annotation tool to highlight key levels of price support/resistance, trendline support, candlestick patterns, etc. Symbols reviewed today included ESPR, HEI, BBRY, DD, CLF, FRSH, EXPE, KO, UTX and SCIF. You'll find all of the charts in the MarketWatchers LIVE ChartList, located at the top of the MarketWatchers LIVE blog page, or simply CLICK HERE. This link provides many annotated charts from the last two MW Live shows.
Greg was focusing on the performance of energy stocks over the balance of the week as they've recently come under pressure once again. Tom said he felt healthcare stocks represent the healthiest area of the market so he was continuing to look for opportunities in that space. Stay tuned as Tom and Greg will be back on Friday, keeping you up to date on the latest technical happenings.
About the author:Tom Bowley co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years.
His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading.
A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015.