Boeing on the Runway Headed South

For such a large cap, blue chip heavyweight in the Dow, the post-earnings selling in Boeing may seem like an overreaction. 

However, the truth of the matter is that BA had been flying on borrowed time for a good while now, as its sharp ascent in 2013 slowed in 2014 and 2015. And now 2016 looks to be the year where Boeing retraces some of that too-easy rally it had a few years back. 

On the monthly chart, below, note the cockeyed but valid topping pattern playing out, with prior $107 highs an intermediate-term target below. I also expect an undershoot below them perhaps down to $90 in the coming months, before value players try to make a serious stand. 

Elsewhere, crude is initially reversing higher after an apparently bearish inventory report, which should make shorts take notice of whether bad news there is priced in. The Fed later today, however, is a wildcard for virtually all assets.