Today was a weaker close than the bulls would like to see - below the prior day's low and S1 in the almost all the key the attempt to breakout - SPY, DIA, QQQ, XLF and KRE. IWM also closed below S1 but managed to hold above the prior low. The SMH and OIH held above S1.
After the bell AMZN reported a very disappointing quarter and was down sharply, this may result in a lower open and a test of the bulls resolve. The markets are also expecting news from the European Union Summit so if could be a volatile session.
With the negative day, the pivots are now negatively stacked and the FTP will be the first level that needs to be cleared to consider a long position. I'd favor the Q's if they are able to rise above that level since they will be above the prior days low at that point, the DIA and SPY's FTP will below today's low. That said, until the FTP is cleared there is no reason to look long in the indexes. One day down is not a correction, and if the upward momentum is broke there is still room to fall and still be into the support of the up move.
Longs
COST
CBST
ANN
YUM
ABT
MCD
ISRG
JVA
OR Reversal
ADP
NTES
Shorts
LULU
BAX
SOHU
CRM
PEP
TAP
