Stocks started off very solidly in the green, trying to build on yesterday’s gains but fell off as the day went on. In the end the S&P 500 eeked out a gain of 0.04% while the NASDAQ fell 0.33%. When you see the chart of the NASDAQ lower on the page it is amazing to see where the NASDAQ topped out intraday; exactly at a resistance line that connected the recent highs. In economic news there was a disappointing number as retail sales rose 0.1 percent in April, after a revised 1.5 percent jump in March, the Commerce Department reported. Expectations called for 0.4 percent growth in April.
Let’s start with the indexes; the S&P 500 hit intraday highs but fell back ….meanwhile the NASDAQ touched nearly perfectly a trendline we’ve had in our chart connecting recent highs and was rejected there. The NASDAQ still remains below its 50 and 100 day moving averages, so to beat a broken record – we continue to see a massive divergence between the large cap/slow growth stocks and the smaller cap/high growth stocks.
We mentioned Keurig Green Mountain (GMCR) after its earnings report last week; today it was revealed Coca-Cola increased its stake in the company, making it the largest shareholder.
In the transportation space, railroad company CSX (CSX) is showing good relative strength.
Resource stocks, especially energy, have held up very well the past month – outside of energy itself here is another name …fertilizer giant Potash (POT) which is acting very well. Believe it or not in 2007 this was a momentum stock.
Last, let’s look at a former momentum favorite which MAY be trying to carve out a bottom – 3D Systems (DDD); a 3d printing stock. It is currently in a potential inverse head and shoulders formation – that is one low (first shoulder)… then a new lower low (head)…then a third low which is not lower (second shoulder). I’ve drawn a potential neckline which the stock attempted to break over today but failed. If the stock falls back below the $45 level, it probably needs more time but if the market turns up for a sustained period this is the type of stock that could see a nice move. Either way it is down from the mid $90s since January.