The banks don't look pretty, and Action Alerts PLUS holding Wells Fargo (WFC) looks downright crummy. Dating back to early January 2016, the most accepted range to trade WFC has been between $47.50 and $50.30. With the stock closing near $47.50 on Tuesday, it's fair to say prospective dip-buyers that aren't expecting the broader averages to completely fall apart should begin paying close attention ($46.50 to $47 would be ideal). To be clear, I don't see much to like in WFC's chart. This sort of play would only be of interest to traders expecting the markets to be trading above recent highs in a very short amount of time.
A reader asked whether Tuesday's decline in Urban Outfitters (URBN) was a concerning development, and my gut reaction is yes. Anyone long URBN from the low- to mid-$20s probably isn't too scared. But considering the stock broke to new highs just three days ago and in one fell swoop collapsed beneath all shorter timeframe moving averages, this is one stock I'd be quick to tighten up stops on. A close below $32 would have me looking toward the 50-day and 200-day simple moving averages (near $28).
Tuesday evening's oil inventory report from the American Petroleum Institute showed a draw of 4.3 million barrels. That's an impressive figure when you consider most were looking for a build of more than 3 million barrels. As you'd assume, crude bounced on news of this draw down. Let's hope Wednesday's Energy Information Administration (EIA) report doesn't completely reverse this bullish turn of events.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at parkcityyeti@gmail.com or posted to my twitter feed @ByrneRWS
