4/28/22 Bottoming Price Action

News:

Markets gapped up yesterday morning rising ~1.5% intraday only to give up most of the gains and close mixed, near flat…

Earnings season continues to deliver winners like Microsoft (MSFT) +4.8%, Visa (V)+6.5%, and T-Mobile (TMUS) +3.9%.

And also losers like Alphabet (GOOG) -3.8% and Boeing (BA) -7.5%.

I’m watching what could be a reversal forming on the charts…

Photo by Jim Wilson on Unsplash

Technicals:

The market’s failed rally was likely the result of an oversold bounce more than any real optimism.

At the close yesterday, three of four major indexes had RSI levels that remained oversold. The Dow is close but remained neutral.

The put-to-call ratio finished the day oversold for the fifth day in a row. The downtrend is growing tired…

This morning futures are gapping up above yesterday’s intraday highs.

It appears that the markets are trying to stage an end-of-month rally. As always I’m more interested in the close than the open.

Timing:

With summer trading set to begin as soon as next week, I’m backing off on my aggression. I’ll be ready to hold any position I take now through the summer months.

This morning we’ll get the latest unemployment numbers. And next week is the Fed’s FOMC rate hike decision.

Watchlist:

*Low Float
^Open Position

*AGRX is on watch
*BLBX has support at $4
*ARCH has resistance at $175
^CYN has support at $3
^NKTX has support at $18
SGML has support at $15
^TCDA has support at $11
^REI has support at $4
ARLP has support at $17.50
CXW has support at $12, resistance at $13
ALKS has support at $30

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