It was a mixed day for stocks as the major index ETFs treaded water most of the day. The Russell 2000 ETF (IWM) edged higher (+.12%), while the S&P 500 SPDR (SPY) edged lower (-.13%). The sectors were mixed with small losses in the offensive sectors (XLK, XLY, XLF, XLI) and small gains in the defensive sectors (XLU, XLV, XLP). As the chart below shows, the Utilities SPDR (XLU) is at an interesting juncture on the 60 minute chart as it bounces off the 50-62% retracement zone and broken resistance. Also notice how XLU broke above the December highs with the January surge. Further strength in utilities could suggest that the market is turning defensive and this could lead to a correction.
**This chart analysis is for educational purposes only, and should not
be construed as a recommendation to buy, sell or sell-short said securities**
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Key Reports and Events (all times Eastern):
Fri - Jan 17 - 08:30 - Housing Starts/Building Permits
Fri - Jan 17 - 09:15 - Industrial Production
Fri - Jan 17 - 09:55 - Michigan Sentiment
Fri - Jan 17 - 10:00 - JOLTS - Job Openings
Charts of Interest: Tuesday and Thursday
This commentary and charts-of-interest are designed to stimulate thinking. This analysis is
not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise).
We all need to think for ourselves when it comes to trading our own accounts. First, it is
the only way to really learn. Second, we are the only ones responsible for our decisions.
Think of these charts as food for further analysis. Before making a trade, it is important
to have a plan. Plan the trade and trade the plan. Among other things, this includes setting
a trigger level, a target area and a stop-loss level. It is also important to plan for three
possible price movements: advance, decline or sideways. Have a plan for all three scenarios
BEFORE making the trade. Consider possible holding times. And finally, look at overall market
conditions and sector/industry performance.
