Market Direction and Stock Trends

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Jeffrey Saut: The call for this week

* March 20, 2017

The Climb

The SPX has experienced two “inside days”, meaning Thursday’s intraday high/low was “inside” Wednesday’s intraday high/low, and Friday’s action was “inside” Thursday’s range. According to Investopedia, “An ‘Inside Day’ is a candlestick formation [in the charts] that occurs when the entire daily price range for a given security falls within the price range of the previous day. Inside day often refers to all versions of the harami [chart] pattern and can be very useful for spotting changes in the direction of a trend.” We would also note there is a small upside gap in the SPX chart that occurred in last “Wednesday’s Win” between 2368.55 and 2368.94. Recall that gaps tend to get filled. Interestingly, the SPX’s 20-day moving average has proved to offer buying opportunities and it is now at 2371.64, so watch those two levels. This week’s trading action is key . . .

https://www.raymondjames.com/wealth-management/market-commentary-and-insights/investment-strategy

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