Lots of stocks with inside days after a day of digestion on super low volume around critical levels. Note that QQQ did get an Accumulation day in volume although considerably under the average daily. Once again, some weaker sectors/groups and stronger ones creating even more diversion with a McClellan Oscillator approaching overbought. Earnings season has begun, Europe rallies on promise of a debt crisis fix and China still hangs in the balance. The slope on all of the 50 day moving averages remain negative even with price action above. Although we have had some great long trades, until we either see a correction or some sideways action, hard to get too friendly up here. Energy/oil and financials the best short contenders, techs more of a "get out of your longs" and biotech and retail although approaching overbought, strong daily charts.
SPY: 117.60 the 50 DMA and overhead resistance at the September high 123.50. Subs-all indexes have positive pivots making them OR Reversal candidates until S1 breaks.
DIA: In the aftermarket, testing S1 at 113.59. The 70 EMA at 114.40 then 117.03 September high.
QQQ: 56.23 the 200 DMA resistance which tested today, 57.35 September high and 55.85 support to hold.
IWM: Still has the 80 month MA to contend with at 68.55 which it attempted and closed beneath. Unconfirmed close into a recovery phase. Would be first place to go for a short if market rolls over. On the other hand, a second close above 68.56 strong.
ETFs:
GLD 162 held up with an inside day and anemic volume. Measured move to 170 the longer 162 holds.
XLK (Technology) Got even closer to but could not clear the top of recent range 25.29. Could drop to 24.00 and maintain its current recovery phase. Hard to get too friendly with RSI approaching overbought territory.
SMH (Semiconductors) 29.74 the high in September and is now officially overbought on a short term RSI indicator.
IBB (Biotechnology) September high 99.54. Not overbought like the techs-support 95.50
XLE (Energy) Could not cross the 50 DMA at 64.83. Underlying support at 60.25 which if breaks 63.00 could be likely to see.
OIH Under 113.75 vulnerable. The 50 DMA a bit away at 124.00.
TLT (The 20 year Treasuries) 6 down days and oversold. Subs-positive pivots at 116.49, with stop at 115.77 in place. Over R1 117.09 could get going.
XRT (Retail) August high 50.50
Longs: I will still be watching TLT as best new swing possibility. Lots of inside days to look at. Still narrowing down the list of featured picks until market corrects or digests further. Lots in overbought territory.
SPG (Oct 25) Inside day after big candle and over the 200 DMA, 160 EMA yet not the 50 DMA or the 70 EMA-both clear over 114.20 which corresponds with R1. Pivots are negative so tight risk is 113.10, a longer miniswing risk is under 112.06 today's low. Swing can use 110.70 the 200 DMA. Day to swing
TIF (Nov 29) Neutral pivots at 69.43. This was a pick Monday when it rallied from 68.00 to 70.50. Today was an inside day. Not as strong a buy now but if good, has more room to go to possibly 73.00. If holds pivot, risk is under today's low 68.55. Should clear today's high on a closing basis 69.97. Day to mini
LULU Positive pivots with risk to today's low 52.21 for mini, 53.00 for daytraders and 49.00 for swing. Recent swing high in September 61.80 and no earnings nearby so could go to 65.00. Day to swing.
WYNN (Oct 31) Provided 135.63 the 200 DMA holds, with positive pivots can look at a reversal against that or S1. Through 141 closes above the 50 DMA then could see gap fill to 145.14 or beyond.Day to swing
Honorable Mention: OR Reversal CERN* (10/27) DVA IDCC PANL POT DECK* (105.83 all time high) CELG ANF CLF Others: VMW (Through 91.00)
Shorts:
ACOM (Reports 10/24) Negative pivots at 24.87 but also must break today's low after an inside day and then 24.15 the 10 DMA. Then can expect another test of recent low 21.60 area. Day to mini
ANN (Nov 14) Negative pivots at 24.02 and with inside day risk only to today's high. Ultimately has to break 23.00 the 50 DMA with underlying support at the 20 weekly moving average 18.65 Day to swing
VRX (Reported Aug 8) Negative pivots at 35.38 and must not clear 36.15 R1. Under S1 34.93, could see recent lows 32.05 with possible drop to the 200 weekly moving average at 20.11. Day to Swing
Honorable Mention: FCX (Oct 19) Negative pivots and risk R1 36.11 URBN (Nov 14) MCP (Nov 11) If cannot clear R1 37.06, but if does consider a long as well.
Goodnight!