Three Positive Takeaways from Yesterday’s Session

By | June 18, 2015

While the S&P 500 met resistance at its 50 day moving average forming yet another indecisive narrow opening and closing range candle, the iShares Germany (EWG) fund, my proxy for all things Greece and Europe, held above its 200 day average and formed a bullish hammer candle. This candle follows two previous large white body candles, all holding above the key average and the 50% retracement level of the 2015 range. If this level holds and the EWG is able to advance from here, it will release a lot of tension in of our market.
As I noted after yesterday’s session, the transports which have been a drag on the broader market recently, look like they are attempting to form a triple bottom. They have a history of triple bottom try’s but, as I said, maybe the third time is the charm. Again, positive momentum in this sector reinforces the same in the broader averages.
Finally, the Biotech iShares (IBB) fund continues to hold in a horizontal channel above the rising 200 day moving average. Shares bounced off the channel bottom at the beginning of the week and tested the channel top end yesterday. This chart looks prepared to breakout and acceleration in this already hot sector, could improve momentum in the broader market.

66617.TRANSEWGIBBcharts

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