Yesterday's gap lower than the prior day low with a negative pivot stack played out as you might expect - an initial rally thwarted by the prior day's lows (SPY, DIA, IWM) and the strongest (QQQ) could not clear the FTP. This followed by an OR breakdown lead to a significant drop. The failed attempt to move higher made the OR breakdown an easier short, that if we'd gone down first. This sequence should be memorized!
As I write this it looks as if today we will gap down again big, but markets are off their overnight lows pretty significantly. Pivots are negatively stacked and the daily moving averages are still in a position to offer some support.
Just like yesterday, if one direction is tested and the market reverses, the second move is worth following. A big lower open that doesn't bounce will be very easy to get caught short in a bounce so Id be careful. A test lower followed by a move higher would be a positive. Likewise if you don't open lower, and initially move higher, beware of a failure.
You'll notice almost all the long stocks have negative pivot stack. This corrections has been very broad but there are still a lot of stocks that have held good position relative to the prior day, daily moving averages, and the 60-min. MA's so that is the basis on which most of these stocks make the list. If the stock has not corrected and has a positive pivot stack, I'd favor an OR reversal rather than a breakout. The stocks that have corrected are probably a better bet for breakouts.
On the short side I'd only focus on them if the market is weak (or failing at the OR high). OR reversals or breakdowns along with the market doing the same would be my preference. I'm not confident we'll see big 3 big down days (this being the third) with out some chop. So be careful with the shorts.
~Long Focus~
CELG
POT
VMW
WYNN
CRM
IBM
BBBY
~Other Long Charts of Interest~
AMZN
PLCM
NFLX
VHC
BIIB
BIDU
BWA
LO
AAPL
ACOM
KLAC
CF
NTAP
LULU
SLB
SBUX
YUM
~Short Focus~
DE
WHR
MTL
SNDK
~Other Short Charts Of Interest~
CREE
MHS
VECO
SNDK
BA
SINA
SOHU
MOS
SMG
