- Charts Worth Watching: AZO, BBT, FITB, HBAN, NEM, NKE, QLGC, QSII, S , SYK, USB, WAG
- Link to today's video.
- Next update will be Tuesday (July 28) by 7AM ET.
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Autozone (AZO) broke wedge resistance with a surge in early July and then pulled back to this breakout area around 155. A successful test of the breakout and a move above this week's high would resume the uptrend. Failure to resume and a move below this week's low would be bearish.
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Despite a surge in the market this week, Nike (NKE) remains weak. The stock broke down in June and then firmed with a rising channel advance the last four weeks. A bearish engulfing formed on Wednesday and the stock moved lower the last two days. This is not good performance in the face of market strength.
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Walgreen (WAG) also shows relative weakness. The stock broke down in June with a gap and then formed a rising wedge advance. The gap and support break are turning into resistance. A move below 29 would break wedge support and signal a continuation of the June decline.
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Regional banks continue to be a mixed group. Some have broken resistance over the last two weeks, but others remain within falling wedge formations. The next charts feature some of these banks.
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Stryker (SYK) stalls after surge. SYK has been stuck in a trading range since May. The stock surged off range support last week, but fell back this week. SYK established short-term resistance just above 40 and a break above this level would be bullish.
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Newmont Mining (NEM) surged with gold last week and then stalled in the 41-43 range this week. Watch for range break to trigger the next signal.
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While the market surged on Thursday, Sprint (S) opened strong and closed weak to form a bearish engulfing. Notice that this pattern formed near broken support and with high volume. RSI is also meeting resistance at 50.
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Quality Systems (QSII) remains range bound and continues to lag the Nasdaq. The Nasdaq is up 12 days straight, but QSII is mixed with a trading range the last two weeks. Watch the range break for the next signal: above 55 bullish and below 53 bearish.
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Qlogic (QLGC) failed at resistance with a big gap this week. The stock was keeping pace with the Nasdaq, but abruptly reversed course with Wednesday's gap. QLGC is now down three days straight with above average volume. The gap is bearish as long as it holds. Also notice that CCI moved back below 100.
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