Forgetting everything that prompted Tuesday’s selloff, on Wednesday, the S&P 500 regained 0.62% of its value. Investors decided mere impeachment chatter wasn’t anything more. But, for the record, volume was light.
Philip Morris (NYSE:PM) led the charge, up more than 5% on word that it and Altria Group (NYSE:MO) won’t be merging after all. Investors had increasingly begun to believe that the pairing wouldn’t pay off. Also helping push the market higher was General Electric (NYSE:GE), gaining 2% as investors continue to see hope for a true turnaround.
At the other end of the spectrum, Match Group (NASDAQ:MTCH) fell by a couple of percentage points after the FTC filed a lawsuit claiming its dating website used misleading ads to encourage people to become paying members.
Just a few weeks ago it didn’t look like Oracle could be held back for any reason. Since August, it has been fighting for its life.
It has been winning that fight so far, to its credit. A key long-term moving average line has more or less held up as a floor, and another technical support level has taken shape, tagging all the key lows since June. But, with ORCL stock trapped in the middle of key ceilings and floors, it would be wise to be ready for any outcome.
Click to EnlargeThe ultimate line in the sand is the line that connects all the key lows since June, as was noted. It’s marked as a yellow-dashed line on the daily chart.
- At the same time, notice how Oracle shares appear to be held under their purple 50-day moving average line, while the white 200-day moving average line has held up as a technical floor.
- Zooming out to the weekly chart is why current and would-be owners should be concerned. ORCL stock is still closer to the upper boundary of a long-term trading range than it is to the lower side of that range.
The last time we looked at KeyCorp back on July 24, it was on the verge of breaking above a relatively important technical resistance line and soaring into new high territory. That started to happen, but before that momentum could develop a marketwide headwind kicked in.
A renewal of that effort is taking shape though. Not only is the effort a healthy one, the budding breakout that wasn’t able to get going then is within easy reach. And this time, it’s unfurling on an even healthier foundation.
Click to EnlargeThe line in the sand, so to speak, is right around $18.50, where a couple of different resistance levels are intersecting. One is yellow on both stock charts, while the other is red on the daily chart.
- This time, all the moving average lines are in respective bullish positions. That is to say, each moving average of one key length is below the moving average of the next shorter length. It suggests the momentum is gelling well … over time.
Union Pacific (UNP)
Finally, with nothing more than a quick glance, Union Pacific shares just look like a choppy, volatile mess. And, perhaps that’s all this is.
It may be more serious than that, however. Although all the signs are subtle, they’re numerous. And, as of this week, the tide turned much, much worse. The bulls still have a chance to pull out of the nascent nosedive. But, the situation is deteriorating pretty quickly.
Click to EnlargeFor the second time in as many months, UNP stock moved below its 200-day moving average line plotted in white on both stock charts. Perhaps worse, that happened just shortly after a couple of other moving average lines acted as resistance (highlighted).
- This time is different than August’s lull though. This time, the selling volume is on the rise and the shorter-term moving average lines are close to pulling below the longer-term ones.
- Zooming out to the weekly chart, should this current selloff take hold, there’s no real technical support until Union Pacific finds a floor near $150. That’s where the lower boundary of a well-established trading range presently lies.
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.