{written by Geoff Bysshe, co-founder of MarketGauge, filling in for Mish}
Mish was expected to return Tuesday morning, but it is now more likely that she'll be back Wednesday morning with an possible appearance in the room and on Twitter Tuesday afternoon. So begin your day in the Day Trading With HotScans Room
The market watch all broke their consolidation lows today. The SPY, QQQ and DIA broke their 3 day low and the IWM broke their prior day low which was a flagging low.
All 4 have reasons to we can point to for support but the pivot stack and momentum is down so unless they trade over R1 the bias will be negative.
Longs:
TLT: This acted as expected for a weak stock market and reached the 124 target mentioned in last night's Evening Watch. Outside of a major news announcement, I would not buy the breakouts and instead focus on an OR reversal over S1 of 122.75. Day
GOOG: Until this breaks its daily consolidation low at 612.50 this should be on your list. The pivot stack is negative so for tomorrow, 624.26 is the hurdle to clear to consider a long position. This level lines up with the high end of one day pivot range. Day to Mini
FTI: Held up remarkably well in the weak market today and it struggled at an expected area of resistance (50.00 - 50.20). The plan is to look for it to break this resistance level before it breaks the risk levels of S1 of 48.85. Day to Mini
CELG: Is set up for a swing move higher, but it rarely moves up cleanly so expect pullbacks if holding for a swing. Pullbacks as low as S1, 63.80 are an opportunity tomorrow. O.R. breakouts or reversals are worth pursuing considering key resistance levels are 65 and 65.80 with support at 64.30 and 64.00. Day to Swing
YUM: Is coiled like a spring. It could break either way big. A breakout over the daily high or 58.15 is what I'm looking for rather than trying to finesse an OR Reversal which runs the risk of a swift failure. Avoid longs under 57.50. Day to Mini
V: A new 52-week closing high and break out of two weeks of consolidation, but it does have a history of failing at breakouts like this so adhere to risk rules. Key resistance levels are 98.80 and 99.37. Key support at S1 and prior daily highs around 97.70. Teh last hours saw an rise in volume so the 98 level should be watched carefully for suport. Day to Swing
Shorts
The shorts are hard to sell on weakness as many seem oversold. Each stock on the list has a similar pattern of breaking a significant daily level of support which could lead to a significant decline if the momentum continues. And, a rally has significant resistance and should not exceed R1 so OR Reversals below R1 are worth considering especially if the overall market is strong. Below I've listed the mini swing risk and target levels for a market that continues to slide.
FLR: Resistance at prior lows of 48. Downside targets 45.50 and 44.16
WHR: Resistance at prior lows of 46. Target 40.50.
GS: Resistance at prior lows of 89.90. Target 84.27.
CLF: Resistance at prior lows of 62. Target 56.00
SLB: Resistance at prior swing low of 66. Target 60.