Yellen Shifts To An Even More Dovish Stance - What Do The Charts Show?
Alan Bradley | Mar 30, 2016 02:21AM ET
Today the overriding news is Yellen's shift to a more dovish position. We saw the markets lift quickly, as that is exactly what the market wants to hear. This was a substantial move for one afternoon, but what is critical is how much affect it had on the daily charts.
I posted two clusters of the key charts below with their midterm channels shown.
Looking at the cluster above, the S&P 500 did not break through its downtrend line. The NASDAQ stopped right at its one-year support / resistance line. The PowerShares QQQ Trust Series 1 (NASDAQ:QQQ), the leader of the day, did break out of its declining channel but has yet to get through its corresponding one-year support / resistance level. The Energy Select Sector SPDR (NYSE:XLE) (energy ETF) didn't get much help from the late afternoon short squeeze. The VIX and the iPath S&P 500 VIX Short-Term Futures Exp 30 Jan 2019 (NYSE:VXX) dropped some, but they are still near their lower support lines.
Looking at the second cluster, the iShares Russell 2000 (NYSE:IWM) is still lagging. The Dow still has not breached its upper channel line. Apple (NASDAQ:AAPL) closed right at its neckline of the big head and shoulders it recently fell below. The Financial Select Sector SPDR (NYSE:XLF) is in trouble, as many are starting to short the banks in anticipation of their stock prices being hit if oil prices turn back down. The SPDR Gold Shares (NYSE:GLD) and the iShares 20+ Year Treasury Bond (NYSE:TLT) both have genuinely bullish setups with lots of room to move higher.
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