Yesterday's big gap down tested the markets nicely. Three important points to notice in yesterday's action.
1. Divergence - SPY and DIA tested their swing low and IWM and QQQ's did not come close.
2. Decent volume on the day in the indexes and in many stocks. AND a big part of the volume came in the afternoon rally.
3. IWM's closed above the basing consolidation that I highlighted yesterday while the other indexes remain in the middle.
When I add this all up I see an upward bias until the shorts fall below their support or rally more into resistance. So I've included the short list but I see most of them as daily charts that may set up for shorts but today may not be the day. GS is the one exception. if it starts falling I'd focus on it.
On the long side I see more potential. If the market gets going to the upside it could continue as bulls and bears will see yesterday as the test of major support that is now following through. Keep in mind that SPY and DIA are still in an area of consolidation so it could just as easily be a choppy day.
Be selective about breakouts, and focus on long OR reversals that are over S1 and preferably the FTP.
~Long Focus~
FL
CVI
AMZN
CRM
~Other Long Charts of Interest~
CVI
CL
UNH
BEAV
JCI
ORLY
JCP
COG
DLTR
TIF
DISH
MCP
GR
VHC
BIIB
TSCO
ACOR
~Short Focus~
GS
MHS
~~Other Short Charts Of Interest
MHS
PNC
GOOG
MOS
POT
AGU
FLR
GS
RIG
ATI
BG
LVS
SNDK
