Avery Dennison (AVY) continues to be sticky to the upside. The label maker and specialty chemical company is one of the few to make higher lows and made a new 52-week high today. Every new high is a good thing, but it needs to show some conviction to the upside. The $65-$66 level has been difficult to break above.
A weekly close over $66 would be positive. Since the beginning of the year, the Relative Strength shown in purple has been tilting up, showing that Avery is performing better than most stocks. The SCTR continues above 90 and has been strong for the last 9 months. A close back below $65 would suggest a failed breakout.
Probably the biggest caution is the AVY volume is not showing a lot of conviction, but that is not unlike most of the market.
As a footnote, the last 4 days for the $SPX have been the lowest 4 volume days of the year so far. The average volume for the $SPX last year was 2.29 Billion per day which is in line with Yesterdays $SPX volume of 2.3 Billion shares. So it is still in the range.
Good trading and have a great weekend.
Greg Schnell, CMT
