Highlights from the Daily Game Plan

www.keystonecharts.net
Apr 13, 2018
2 min read

ESM8: Holding a short term trend line overnight. A settle above the vwap from the March high (2666) would be a positive. 2679.75 is the March 27th and recent high (and 50% retrace of March). Upside momentum potential above this level to 2710 area. SPX would likely see new buyers with a clean move above the 2017 yr end settle of 2673.61.

The DJIA has been holding this trend line as resistance; momentum potential with a clean break out above it

S&P Bank ETF (KBE) was up +1.77% yesterday ahead of some key bank earnings today. KBE has used its 100dma as a short term pivotal pt and needs a settle above 48.70 for upside momentum potential.

Citigroup Inc. was up +3.2% yesterday ahead of its earnings today and settled just below the 200dma which has been pivotal. A settle above it today would add to the positive tone in the bank sector, and overall market.

XLK (+1.2% yest) touched its 50dma yesterday, before pulling back a bit. A settle back above the 50 day would be a short term positive for the technology sector.

USM+ESM: being long both the equity index and 30 yr bond again hit and held the 50% retrace from the March high (third time since March 29). Upside momentum above this level would likely be due to an equities rally and bring some confidence back to passive investors.

USM8/ESM8: Fixed income had been outperforming the equity indices, but the break of the short term trend line yesterday gave the edge to equities as the long bond slumped. We will look for a move to the .618 retrace before any support.

USM8 is negative overall below the 200 week moving average (pivotal resistance at 147’05).

TYM8 is holding above the 50dma which has been a decent short term pivotal pt and now support. A break of 120’10 (s/t .618) would set up for downside potential of some sort. 10 year yield has 2.838% as its 50dma closing key.