Stocks gapped open and then sat all day. This is the key to watch. Volume still isnt increasing which may mean that this short rally is doomed. Oil however kept its bid all day which is a positive sign as it may be holding its move for more as well. For the S&P 500, there is support near 2902 and 2885. Resistance levels are currently at 2938 and 2955.
GLOBAL ASSETS UPDATE
TWELVE SECTOR ANALYSIS
On Wall Street, 8 of the 12 major market sectors are seeing green today. The biggest gainers are Energy (XLE), Utilities (XLU), and Pharmaceuticals (XPH). The weakest sector today has been Software (XSW) which has declined -0.6%.
The CBOE Volatility Index (VIX) is down $-1.05 going from $17.93 to $16.88 today. Both Call and Put volumes are below average today. The ratio of puts to calls for the current at-the-money strike of $17 is below average which means that traders are favoring Calls over Puts currently.
A NASDAQ stock with unusually high volume today is Grupo Financiero Galicia S.A. (GGAL). No AMEX names had significant interest, and on the NYSE PG&E Corporation (PCG) has had unusual volume.
The biggest mover out of other high-volume stocks is PG&E Corporation (PCG) which has moved down over -25% recently on volume of over 47 million shares. The chart below shows the performance of PCG over the last year. PG&E Corporation is a holding company.
DARWIN PG&E CORPORATION FORECAST
The performance of PG&E Corporation (PCG) will be worth watching in the near term for a number of reasons. The forecast for the coming week on PCG is for the price to go up. The correlation of PCG to the S&P 500 recently has been 0.4 which is a weak positive correlation. The key level to watch for PCG is upside resistance at the $19 price point.
Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network