Rally Takes SPY Through the First Key Resistance Level - Chaikin Analytics

Rally Takes SPY Through the First Key Resistance Level

Stock of the Day – The Kroger Co. (KR) 

The Kroger Co. (KR) has a Bullish Chaikin Power Gauge Rating and has been leading the SPY since February. The OB / OS Indicator is moving out of an oversold position and Chaikin Money Flow is neutral. KR is above the rising long-term trend line and has support in the $28 – $30 range. Above $27.38, KR is likely to continue to outperform.

The Chaikin Power Gauge Rating for KR is Bullish due to very strong price/volume activity and very positive expert activity. The stock also has very weak earnings performance. Price/volume activity for KR is very strong, as indicated by price strength versus the market and strength vs. its long-term price trend.

Pre-Market Movers

Advancers: CCL (18%), NCLH (16%), RCL (16%), CNK (15%)

Decliners: GPN (2%), EIX (1%), BGCP (1%), WHR (1%), BPYU (8%)

Market Commentary/Looking Ahead

US equities were higher in Monday trading, finishing just off the best levels. Treasuries were weaker across the curve. The dollar was better against the yen and the euro. Gold finished up 2.9%. WTI Crude settled down 8.0% after a nearly 32% rally last week.

  • Outperformers: Tech +8.78%, Utilities +7.85%, Consumer Disc. +7.73%, Materials +7.60%, Financials +7.46%, REITs +7.11%
  • Underperformers: Consumer Spls. +3.92%, Energy +5.15%, Healthcare +5.40%, Communication Svcs. +6.70%, Industrials +7.02%

S&P futures are up 2.5% after US equities rallied sharply on Monday. Asian equities were mostly higher overnight with India, China and Japan leading. European markets are seeing big gains. Treasuries are weaker across the curve. The dollar is softer on the major crosses. Gold is up 0.4%. WTI crude is up 3.9% after losing 8%. 

Key Levels To Watch – SPY

Yesterday’s close took the SPY above first resistance which opens the door to a move to the $280 – $290 level. The close above this key level eases the pressure on the market for now. A cautiously optimistic stance is prudent at this time. 

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