Don't Ignore This Chart!

Wynn Resorts Bucks the Selling Pressure


It is always interesting to find out which stocks advance when the market falls sharply, such as Friday. The S&P 500 was down over 2% with heavy selling pressure, but 11 stocks managed to buck the selling pressure and close higher on Friday. How's that for some short-term relative strength. A list of these stocks is provided at the end of this commentary. Looking through the charts, Wynn Resorts (WYNN) jumped out because the stock is trading within a big bullish continuation pattern. WYNN reversed its downtrend with a big double bottom breakout in February and then consolidated with a long rectangle. Admittedly, this big consolidation can go either way, but the odds favor an upside breakout. First, the prior move was up and this favors a continuation. Second, the stock held support when the market broke down. Third, WYNN is up month-to-date and the S&P 500 is down. Thus, WYNN is showing some relative strength. A breakout at 105 would trigger a bullish resolution to this pattern and argue for further strength. 

S&P 500 Stocks that closed higher on Friday. 

Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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