With the heavy selling this week the A/D lines have reached important support with the McClellan oscillator down to -185. In order to resurrect the uptrend a sharp rally is needed by early next week. The inability of crude to rally on positive API numbers in a sign of weakness with heavy resistance in the $41-$42 area.
The Wednesday closing scan of the Nasdaq 100/IBD 50 stocks shows only one stock with positive short term momentum,RS and OBV action. PGT, Inc. (PGTI) is a small cap building materials stock that was up over 5% Wednesday on better than average volume.
Weekly chart show that the rally from the Nov. low of $10.11 came close to the declining 20 week EMA at $12.31 on Wednesday. The weekly OBV is above its WMA but the RS analysis is still negative. Weekly starc+ band at $13.61.
The daily chart looks much better as the OBV has made a new high and has been positive since 11/16. Daily RS has surged to the upside suggesting it is becoming a market leader. The 20 day EMA is at $11.38 with daily chart support at $10.92, line a. Once above $12.50 it could run to $13.50 with the 61.8% resistance at $13.78.