Expect Two-Way Volatility to Persists as Stocks Trade in a Wide Range Between Support & Resistance - Chaikin Analytics

Expect Two-Way Volatility to Persists as Stocks Trade in a Wide Range Between Support & Resistance

Trex Company, Inc. (TREX) has a Very Bearish Chaikin Power Gauge Rating and has begun to lag the SPY once again. The OB / OS Indicator is moving lower in an overbought position and Chaikin Money Flow is bearish. TREX is below the declining long-term trend line and triggered a Relative Strength Breakdown signal today. Below $90, the stock is likely to continue to underperform.   

The Chaikin Power Gauge Rating for TREX is Very Bearish due to very poor financial metrics and very negative expert activity. The stock also has strong earnings performance and strong price/volume activity. TREX’s financial metrics are very poor due to a high price to book value and high price to sales ratio.

Pre-Market Movers

Advancers: PK (10%), LYV (10%), TFC (9%), MGM (9%), DISCA (9%)

Decliners: DAL (6%), UAL (3%), AAL (2%), LUV (2%), APA (2%)

Monday’s Macro Market Trends

Equities

The SPDR S&P 500 ETF (SPY) has a Neutral  Chaikin Power Gauge ETF Rating and continues to outperform the IWV (Russell 3000 ETF). The OB / OS Indicator remains in an overbought condition and Chaikin Money Flow is bearish. The Power Bar Ratio is bearish at 9 to 145. The fund remains below the declining long-term trend line.  

First resistance is at the $264 level. Should that give way, the next key zone is between $280 and $290. On the downside, support at the December 2018 lows remains most important ($230). Below that mark, the door would be open to a move to the $170 level. In the near-term, bulls defended the $245 level last week.   

Small Caps

The iShares Russell 2000 ETF (IWM) now has a Neutral Chaikin Power Gauge ETF Rating and continues to underperform the SPY with the intensity of underperformance increasing last week. The OB / OS Indicator is in an overbought position and Chaikin Money flow has turned slightly bullish. The fund is below the declining long-term trend line. 

Support begins near $100 while resistance is in the $110 – $115 range.   

Share on facebook
Share on twitter
Share on linkedin

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top