NASDAQ (QQQ) has a pattern worth paying close attention to. New highs Wednesday, followed by a bearish engulfing pattern on Thursday ending with an inside day on Friday. Volume patterns indicate 4 Accumulation days over the last 2 weeks. Yes, the index is at the top of a 10-year channel and overbought on the weekly Relative Strength Indicator. Bottom line? Follow the way the range breaks and don't over think.
S &P 500 (SPY) Subs-132.13 clears R1 and Friday high. Otherwise, with negative pivots, a failure to get through that point or a penetration, then failure of R1, and could see more correction, even perhaps down to 127.70.
Russells 2000 (IWM) Inside day which means follow the way the range breaks and if that means above Thursday and Friday's high, 81.00 still a target. Subs-Pivots positive
NASDQ (QQQ) Subs-39.83 sits on the fast moving average and if fails after the notable daily chart pattern would not only give pause but should bring in the sell programs. Conversely, over Friday's high, 64.00 reasonable. Pivots are still neutral.
ETFs:
GLD 175.50-176.50 not unrealistic unless it breaks 167.05.
XLF (Financials) 13.96 was the gap low 2 weeks ago. Watch that to hold. On the upside, 14.65 is the next wall of resistance. Subs- 14.21 R1
IBB (Biotechnology) Inside day.
IYT (Transportation) DOJI Hammer candle followed by a bullish engulfing pattern. 97.00 in the cards.
XLE* (Energy) 73.17 October 28th high was matched last week. A double top is possible for sure (needs to break 70.70). Then again, over that high, an inverted head and shoulders bottom equally possible. Subs-R1 71.78 will get me back in
EWY* (South Korea Index) Inside day and hovering on the 200 DMA. Subs-Pivots positive at 57.87 with risk 57.62. If clears this area, could see 65.00 to 70.00.
TLT (20+ Year Treasury Bonds) Like this now over 118.50 to another test of December highs.Subs-Pivots positive Risk 117.25.
Longs: Interestingly, found lots of good setups, but only noting ones that are not so overbought.
MAKO Neutral Pivots at 37.21 with an inside day Friday making 36.70 S1 a good first risk and the 10 DMA at 35.60 another point of support to hold. Through 37.71, could see 2011 high 43.00. Day to Short-term Swing
RHT We got out last week after making ½ ATR, but back on list since 47.08 is a tight risk after an inside day. 2 days under the FTP and Condition 1 so can look at ½ over the FTP at 47.50 and ½ over R1 47.88. Some resistance at 53.00 near 2011 high 53.42. Day to Swing
MOS Positive pivots and tried but never followed through on the 30 minute Opening Range breakout last Friday. Ended also with a bullish engulfing pattern and support now at 55.00, the 10 DMA. If this can power out of this area (highest close since November 11) then could see the 200 DMA at 62.00 next.Day to Short-term Swing
HLF Actually, this is both a long and short candidate since pivots are neutral at 57.41 and the 50 crossed beneath the 200 DMA last week. Long since the price is above the DMAs and short since it is possible if cannot clear 58.30, it could drop to 54.50. But, if holds the pivots, all time is 63.40, also reasonable. Day to Short-Term Swing
NSC Oversold on the daily RSI and right on the 50 DMA with Friday's low 73.89, a good risk. Pivots negative so must clear R1 74.50 then Friday's high 74.86. With the weekly and monthly chart still in an uptrend, could see a run to 78.00 with all time high 78.40. Day to Swing
Honorable Mention: Must Clear a High or R1: CTRP* (27.92) ESRX (52.48) IDIX (15.06) APH*(55.50) Pivots OR Reversal Candidates: HAL (Risk 36.81) YOKU (Risk 22.05)
Shorts: Even more interesting is that I did not see many good short setups-best pick is to look at QID orSDS if QQQ or SPY breakdown.
SHLD Negative pivots at 44.36 and must not clear 45.50. Must break 43.50 to see a retest of recent lows around 30.00. Day to Mini.
WLP Must break S1 and Friday low after an inside day preceded by a bearish engulfing pattern. Then could see 60.00 and possibly 57.00. Day to Short Term Swing
Have a great Sunday!