Stocks were back and forth, in the red and in the black, for the better part of Thursday’s action. When push came to shove as the closing bell approached though, neither side of the table was doing much shoving. The S&P 500 closed a mere 0.05% lower yesterday.
It wasn’t because some names didn’t do their part. Boeing (NYSE:BA) rallied more than 4% after announcing it had won a respectable contract from the Department of Defense to upgrade wings on the more than a hundred A-10 attack aircraft. But, investors may have been further encouraged by word that the aircraft maker was planning on ramping up output of the beleaguered 737 MAX. That news suggests customers believe the passenger jet can be made safe.
There were just too many names like Splunk (NASDAQ:SPLK) holding the market down. Shares of the software company fell nearly 8% despite a solid quarterly report, as Splunk also announced an acquisition investors aren’t entirely convinced is a great idea for the $1 billion it’s paying for the deal.
HP shares have been all over the map since late last year, and weren’t exactly a picture of stability for the better part of the past three years. The selloff since October, however, has not only been bearish, but well framed by clear support and resistance levels.
The bad news is, that trading range is steering HPQ stock lower, and there’s more downside to go before the floor is bumped into again. Perhaps worse, the bearish momentum is starting to build in a way that portends lower lows are imminent.
Nvidia was one of the hardest-hit names last year, sent lower in step with the broad market’s weakness, which was exacerbated by a meltdown of the crypto-mining industry.
NVDA stock has been working on a recovery since late last year though. It has not been able to form one just yet, but it continues to try. The end result is a well-made set of support and resistance lines. Better still, Nvidia stock is close to punching through the upper boundary.
Finally, Albemarle has been in something of a nosedive since early last year. Although it has seen the occasional rebound effort, each one of them has been met by a move to lower lows.
There has been a method to the madness, however. Each lower low and each lower high has contributed to the establishment of a well-defined, falling trading range. The current trajectory is clearly downward, but that doesn’t necessarily mean ALB has to stay on the path. It does, however, suggest there’s room for a little more downside before traders have to make a decision.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley.