Endo International (NASDAQ:ENDP) has crashed from a high of near $100 in 2015 to a low of $13.63 today. The stock is a pharma play that is tied into the same sector as $VRX. With tons of scrutiny, this sector has been crushed. [more]
The S&P 500 is having a solid rally today on light volume. At this very moment the $SPY (the tracking ETF for the S&P 500) is filling a major gap from May 2nd, 2016. In addition, it is tagging a downsloping trend line that starts on April 20th, 2016. [more]
Freeport-McMoRan Inc (NYSE:FCX) has ripped higher from a low of $3.50 on January 20th, 2016 to a high today of $14.04. This is a mega run of 300%. While huge, the run itself does not dictate a pull back. Instead, smart investors need to look at the chart and find technical levels for a drop.
In the chart below these technical reasons show perfectly. Notice the stock hit a major pivot top from October 2015 as well as a secondary upsloping trend line connecting the lows from August & September 2015. The fact that two major trend lines intersect right where price hit, tells us there is a 90% chance of a sharp correction in the $FCX price action. A pull back is likely to take you down to $11.00.
The S&P 500 has been a wrecking ball, blasting through resistance after resistance over the last two months. In all, the markets are up 15% from their lows in February. A level is now being hit by the $SPY that is more major than many of the last resistance points.
If you connect the highs stretching back to the all-time high on the $SPY from May 2015, it creates a perfect trend line which is now being tagged. Note the chart below. Will this be a level for a pull back? Ultimately, in normal market conditions it would be an epic pull back. However, with the Federal Reserve continuing to wave the white flag and volume remaining near the lowest levels in a decade, it is not as easy to call as usual. Ultimately, as chartists we have to trust the chart and believe a pull back is near.
The $SPY is quickly approaching a trend line shown in the chart below. Notice how it connects through all the highs extending back to the all-time high on the $SPY in May 2015. In other words, the markets are testing a level/trend line that began almost a year ago. [more]