Islands everywhere. IWM UUP FXI AAPL for starters. But trading on that one pattern alone when the market goes up and down 100 like a slinky, can strip one of his/her shirt leaving one, well, bare chested. Most famous and lasting island top of late was the one in SPY in July. That is still in place. This also brings up another fact about bear markets-they can have the most vicious rallies. QQQ held the 200 DMA and are in an Accumulation phase. Other chart patterns have conflicting signs with islands, moves under the 200 yet holding the 50 DMA and positive slopes. And we now posted a third distribution day in volume.
SPY: Closed above 122.70 the 80 month moving average with a doji day. Subs-Provided today's low holds, look for R1 and today's high as either resistance or a point to buy above.
IWM: 68.75 the 80 monthly moving average and now next support. Subs-Needs a second close to confirm recent island-go in to depth in today's video. Otherwise, watch today's high which corresponds with the 10 DMA.
QQQ: Held the 200 DMA on a closing basis with next support 55.50. Subs-over today's high impressive
ETFs:
GLD Back to warning phase but held the exponential moving average on the open and never looked back. Overhead, a declining 50 DMA. Subs- R1 168.68. Support now 166.15.
SLV (Silver) If cannot clear 33.00 could see more downside. Subs: R1 32.91
FXI (China) Perfect example of an island top with conflicting signals since held a positive sloping 50 DMA. Subs- R1 36.05
TLT (20 Year Treasuries) FOMC minutes released at 2:15 EST.
SMH (Semiconductors) the weekly moving average coming back into play as a support level to watch.Subs* If there is a chance for a rally, watch 31.26
XLF (Financials) Technically, still a gap and island top. But, a very interesting hammer candle. Subs-13.33 R1 with support now 12.59 the 50 DMA
XRT* (Retail) Still the best looking sector/group. Subs-if clears R1 52.76 will look to buy
OIH (Oil Service Holders) 121.00 support and resistance to clear 125.75
XLE (Energy) Subs R1 68.53 and would consider following up
Longs: I love to find new ways to scan for setups. Today, besides the tried and true, have included stocks with an unusual narrow range indicator. Will note as (NR 39) for example, which means the narrowest range it has had in 39 days. Noted ETFs also on watch over R1. Lots to look at so suggest you follow the stocks in the sector/groups that perform best.
DPZ 3 days under the FTP with R1 32.05. Risk 31.05. Since over the weekly Bollinger band, has room to upside if gets going. Day to Swing
CTXS 3 days under the FTP at 70.53 and on list since held the 200 DMA at 69.90 making today's low a clear risk. R1 must clear along with today's high 72.15. Has room to 85.00 Day to swing
NIHD When a stock holds a swing low there is a reference point to use once it gets oversold. Now has to clear today's high 23.71 to see a move to 31.30 or beyond with risk 22.26. Day to swing
NFLX (NR 185) On list because it had such a narrow range. Can go either way really. Use R1 81.15 to catch a pop. Hesitant to short here because weekly RSI oversold. 94.00 overhead resistance with a close back over 96.65 impressive. Day to mini and could turn to swing
Honorable Mention*: ANF QCOR COG TSCO Condition 1 or 2 stocks with 2 or more days under the FTP and held S1. Can buy half above and add over R1 (if market is firm): Note: will tweet points if setup
Must clear R1 YUM LVS (48.42) JWN GOOG (today's high) Oversold, held Major MA must clear R1 CERN (62.98)
Shorts:
CTRP Must not clear R1 35.15 with negative pivots at 34.33. Support 31.10 the 200 weekly and if that breaks, 30.25 next with 24.50 target possible. Day to mini
WYNN (NR 14) 131 now resistance that should not clear. Negative pivots at 128.88. Support at 122.Day to Swing
SYK Negative pivots at 46.90 and R1 47.63. Under the 80 month and 200 weekly moving averages with overall daily pattern weak. Support at 44.00. Day to swing
Hon Mention: OR high failure as long as R1 not cleared: AMZN SINA (NR 69) GMCR (NR 54)APA (NR 9)
Goodnight!
